Our client, a leading healthcare IT business, was considering acquiring another provider as part of its strategy to provide integrated and cross-organisational healthcare IT systems. The target company supplied software for hospital pharmacies, A&E, patient administration, patient records, mental health and community care.
We had worked with both the potential acquirer and the target previously in both transactional and non-transactional settings. In this instance, we were engaged to conduct commercial due diligence on the target business.
“The distinctive factor for CIL is their market knowledge. It is a complex market but CIL picked up on all the prevalent points very quickly and were able to explain it in an objective way. It was impressive to see all the work that went behind the report. Considering the time scale the amount of information we received was pretty amazing.” – Healthcare client
Our work included an extensive customer interview programme which covered all of the target business’ core products and services. In addition to this and extensive secondary research, we leveraged our significant knowledge of the business as a result of our previous work with the business.
We improved the acquirer’s understanding of how the addition of the target would complement its current proposition by:
- Defining the target business’ current market share and identifying potential headroom for growth.
- Assessing the extent to which the business was aligned with the acquirer’s underlying strategy.
- Identifying the target’s key points of competitive advantage and assessing their defensibility.
- Determining the significance of the demise of the National Programme for IT (NPfIT) in the NHS and its impact on NHS strategy for investment in IT.
- Generating market forecasts, including a range of sensitivities, and analysing the target business’ orderbook to determine the viability of the business plan.
- Analysing synergies that could be leveraged post-integration.
The potential acquirer successfully completed the acquisition of the target, backed by established debt providers. Our report has enabled the acquirer to broaden its reach and range of integrated healthcare IT systems through a successful acquisition in an adjacent market.