AI Due Diligence for Digital Health Acquisition
5 weeks | AI & digital due diligence
The Challenge
A PE fund was evaluating a EUR 120M acquisition of a digital health platform with AI-enabled diagnostic capabilities. Traditional commercial DD would miss critical questions: Was the AI clinically validated? Was the data strategy defensible? Could the technology actually scale commercially? Fund needed independent assessment before proceeding.
Our Approach
We conducted specialized AI/Digital DD covering product-market fit validation, clinical evidence maturity, regulatory readiness (IVDR, GDPR), data infrastructure quality, and commercialization barriers. Our work included technical discussions with the target's engineering team, customer interviews on actual usage patterns, and scenario modeling for different regulatory pathways. We specifically assessed whether AI claims translated to real commercial value.
Results
- Validated clinical evidence as strong but with 12-18 month regulatory risk
- Identified data infrastructure gaps requiring EUR 3-5M investment
- Flagged customer acquisition cost significantly higher than management claimed
- Recommended 18-month commercial maturity period vs. immediate scale
- Provided detailed integration roadmap and risk mitigation plan