Case Study
Identifying acquisition opportunities in the complex wheelchair market for a mid-market PE firm
Target Identification | Market Due Diligence | Investment Opportunity Assessment
Business need
- A leading European buyout firm wanted to foray into the medical devices market in the US.
- It was specifically looking to map the market for medically necessary products that are designed to meet the functional needs of individuals.
- It also wanted to identify manufacturers or distributers of durable medical equipment including complex wheelchairs, for potential acquisition.
To map the medical devices market and identify potential targets for acquisition.
The client outlined three key reasons for selecting RocSearch:
- Our proven investment research and advisory capabilities.
- Our experience and understanding of the medical devices sector
- Our unique RocEye target identification approach with a proven record of identifying niche opportunities.
Approach and Methodology
- Our investment advisory team mapped out the medical devices market in the US . We leveraged market leading proprietary databases and scanned through 40+ public sources such as league tables, associations, tradeshows, and online directories to build a comprehensive target universe.
Using our comprehensive RocEye target identification approach, we screened a universe of 500+ companies to shortlist & profile 30 investment-worthy targets.
- We deployed our comprehensive RocEye approach to screen the target universe and identified companies that met the client’s investment criteria.
- The target set included companies that were manufacturing or distributing a variety of durable medical equipment including complex wheelchairs, traction equipment and specialized walkers amongst others.
- Having screened over 500 companies, we shortlisted and profiled 30 investment worthy targets that had revenue greater than $10mn, with a positive EBITDA margin and with clearly displayed trend of strong market presence.
Business Outcomes
- The study provided a curated list of high priority investment-worthy targets.
- The client used the market map as part of their pre-due-diligence of the sector to identify platform as well as future add-on acquisitions.
- The client leveraged the pipeline of opportunities to initiate the second level of due-diligence for three opportunities and finally closed the deal with a platform acquisition.
The client successfully struck a large deal, acquiring a leading provider of complex rehabilitation mobility and accessibility solutions.
