Vendor Due Diligence for Diagnostic Device Exit
6 weeks | Vendor due diligence (sell-side)
The Challenge
A UK-based diagnostics company was preparing for sale and needed to strengthen its commercial story before the buyer process. Management wanted to address buyer concerns proactively: customer concentration risk, competitive positioning in a consolidating market, and reimbursement sustainability post-IVD Regulation.
Our Approach
We conducted a vendor due diligence engagement that validated the commercial fundamentals and identified value creation opportunities. Our work included market sizing validation, customer quality assessment, competitive positioning analysis, and reimbursement pathway review under new UK/EU frameworks. We created a comprehensive vendor DD report positioned for buyer confidence and valuation support.
Results
- Demonstrated >90% customer retention despite market consolidation
- Validated 85% gross margins as sustainable vs. competitive threats
- Identified £2M annual cost optimization opportunity for buyers
- Supported 15% valuation uplift vs. initial expectation
- Closed transaction with zero post-close adjustments