Merger and Acquisition

Regulatory pressure is building in terms of development and approval, and on the pricing and cost containment fronts. While MRA Group can access big pockets to combat these forces, the precarious situation that medical device sector face is exacerbated by significantly constricted credit.

Against this backdrop, medical device companies are turning to mergers and acquisitions as a way to bolster their pipelines and improve efficiencies.

Key Questions:

•  What market is the company competing in?
•  Do I know the approximate size of the market?
•  What is the primary goal of this acquisition/merger?
•  Who are the other key participants in this market?
•  What relative competitive position does my company have in the market?
•  Do I know how the customers perceive our company?
•  What is the market share position of our company?
•  What is the relative size of our company in terms of annual sales and employees?
•  Do I see any cost-elimination benefits through this acquisition?
•  What benefits will it bring to my company and customers?
•  What are the strengths of this company?

How we help?

•  To help companies and investors prepare for negotiations and enhance decision making capabilities by staying up-to-date and understanding deal structures in the medical device industry.
•  Assessing markets, identifying and profiling targets across numerous geographies and therapeutic areas
•  Analyzing and forecasting markets for new products
•  Carrying out pre-bid and bid due diligence and supporting management on acquisition opportunities
•  Supporting post-acquisition and operational planning to maximize commercial growth potential.
•  Facilitated synergy workshops with hundreds of buyers from both companies to meet and agree on strategy before change of control.
•  Evaluated key functions against benchmarks, highlighting opportunities to improve by aligning resources, consolidating, improving processes, outsourcing and automation
•  Delivered a report on the opportunities, which the client used to validate the investment thesis and establish its offer
•  Selecting the optimal acquisition candidate for your company
•  Identifying market opportunities that an acquisition strategy can exploit
•  Measuring customer attitudes on company's products to indicate their image in market
•  Providing customer demographic data that gives insight into future market potential and growth for targeted company
•  Identifying opportunities for growth in market segmentation analysis
•  Providing competitive benchmarking measurements to identify areas for fast improvement in company
•  Identifying key trends in the market, the company's customers, and relative position with competitors to pinpoint future problems and opportunities

Analysis Involved:

•  Asset based evaluation: We do business valuation that focuses on a company's net asset value, or the fair-market value of its total assets minus its total liabilities. The asset-based approach basically analyzes what it would cost to recreate the business. There is some room for interpretation in the asset approach in terms of deciding which of the company's assets and liabilities to include in the valuation, and how to measure the worth of each.
•  Earning based evaluation: Our aim is to make an intelligent projection of the ability of the firm to capture its intellectual capital, intellectual property and/or competitive advantage as Future Free Cash Flows over a fixed period plus a perpetuity or terminal cash flow that captures the life cycle position of the firm.

Business Impact:

•  Robust due diligence
•  Quick wins following post-merger integration
•  Long-term strategic and operational improvements
•  Improved device pipeline development and portfolio management
•  Validating cost/benefit assumptions.
•  Identifying hidden values.
•  Providing a list of priorities to capture short-term savings and/or customer benefits.
•  Developing a list of investments to support the strategic goals.

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