Commercial Due Diligence on a Next Generation Medical Training Tool

Client and project overview

• Conducted commercial due diligence (CDD) for a leading B2B data and information business.
• Focused on evaluating the commercial attractiveness of the 3DDA solution market. We also validated the investment thesis – that the target would be a strategic extension for our client’s medical book assets because it capitalized on the growing adoption of digital and virtual reality technologies

Key questions

As part of our CDD process, we focused on the following questions:

• What was the sub-segment size and notional opportunity for 3DDA tools?
• Who are the addressable users?
• What is the range of content and related tools used by students and medical /nursing schools for foundational and advanced anatomy courses?
• To what extent do current solutions address customer needs?
• What were the relative strengths and weaknesses of the target and competitors’ capabilities and products across the identified use cases/feature set?
• What were the synergies between our client the target business?

Methodology highlights

• Conducted targeted interviews with market experts, current and prospective customers of the target company, competitors’ B2B customers, our client’s B2B customers, and competing vendors
• Sized the relevant sub-segment using both supply and demand-side methodology
• Re-built the business plan for both B2B and B2C customers within a tight timeframe with limited access to target management/customer data

Results

Based on our insights, our client acquired the company successfully two months after we delivered the project.