Maximising revenue growth - commercial due diligence on a diagnostics business for a UK business development agency

The issue:

Prior to providing public funding, a UK government business development agency sought advice from PwC to perform commercial due diligence on a diagnostics business. The target business focused on the research & development and manufacturing of home monitoring devices, including a home INR monitoring kit (for warfarin) and home cardiovascular monitoring kits.

Our approach:
  • PwC analysed a number of key issues that were integral to the achievement of the management business plan.
  • Analysed available public information to understand how the products would fit into the healthcare mix, provided our advise on the utility and novelty of the products and whether management's revenue targets were realistic.
The outcome:

Our client gained a better understanding of the risks inherent in the business plan and where its funding was most needed. Using our advice, our client approached management with proposal that minimised the risk of research & development on jobs in the local area whilst allowing for potential return on its investment through a royalty scheme.