Commercial Due Diligence Healthcare
What are the priority areas for a Commercial Due Diligence of a healthcare company?
The healthcare sector is much more dependent than other industries on complex regulations, which must be observed, for example, when obtaining approval for a medical device or when billing health insurance companies. In addition, the legal requirements also differ in the regional markets. For example, FDA approval in North America is not the same as MDR certification in Europe.
Here we help our clients through the "regulatory jungle" with our expertise and experience from over 100 healthcare projects.
In addition to the usual questions about the market and competition, a Commercial Due Diligence in the healthcare sector should therefore include a precise analysis of the level at which the company is active in the healthcare sector and the extent to which it is or could be affected by certain requirements if changes such as the introduction of a citizens' insurance scheme are discussed in politics.
In a CDD in the healthcare sector, are expert interviews and market surveys also conducted and are there any special requirements for the experts and surveys?
Yes, as in CODEX Partners' other industries, a Commercial Due Diligence in the healthcare sector can involve interviewing designated experts as well as conducting market surveys, e.g., of physicians, dentists, medical supply stores, or dental labs.
CODEX Partners uses experts in the healthcare sector who have many years of experience in the respective area of the healthcare market in which the target company is active. In this way, we ensure that we develop an in-depth understanding of the market and thus also of the company's starting position. This is the only way to make reliable statements about the attractiveness of the business model.
If required, the experts from our network can also be called in after the process has been completed, e.g., for advisory board activities.
We at CODEX Partners can also develop our own instruments for market surveys, based on our deep expertise in the healthcare market as well as in market research, which precisely fit the company's target group in terms of content and methodology.
When should CODEX Partners be involved in the acquisition process?
As a matter of principle, CODEX Partners should be involved in the takeover process as early as possible, regardless of the sector—i.e., regardless of whether it is a healthcare, an industrial or an IT company. In this way, we can ensure from the very beginning that the truly relevant issues in the process also receive sufficient attention, while no time is wasted on unimportant sideshows.