Pharma Company Acquisition Due Diligence

Success Stories

Pharma Company Acquisition Due Diligence

A leveraged buyout firm identified a pharmaceutical company as a promising acquisition target but needed to evaluate its potential. Tudos conducted due diligence to help the client make a swift decision, leading to a successful acquisition. Within two years, the company’s EBITDA doubled.

The Story

MediInvest*, a leveraged buyout firm, had identified PharmaCorp*, a mid-sized pharmaceutical company known for its innovative drug development, as a potential acquisition target. However, MediInvest needed to verify the company’s potential and risks before proceeding with the acquisition.

For MediInvest, the value of the acquisition hinged on:

MediInvest engaged Tudos to conduct a four-week due diligence process to provide the necessary insights for a swift and informed acquisition decision.

Highlights

Pre-acquisition EBITDA growth rate

0 %

EBITDA growth rate two years later

0 %

Our Approach

Tudos focused on four key areas to quickly determine the economic value and strategic fit of acquiring PharmaCorp for MediInvest.

Financial Due Diligence

Conducted a detailed examination of PharmaCorp’s financial statements, including revenue streams from existing patents and drug sales and R&D expenditure.

Validated the company’s assets, liabilities and financial projections.

Operational Due Diligence

Assessed the efficiency of PharmaCorp’s drug development processes, including clinical trials and regulatory approval timelines.

Evaluated the company’s production capabilities and operational readiness for new strategic initiatives.

Compliance Due Diligence

Ensured adherence to EU regulations and other international health standards.

Reviewed legal obligations, including contracts and ongoing litigation and assessed environmental liabilities.

Strategic Due Diligence

Analysed PharmaCorp’s market position, competitive landscape and growth potential.

Evaluated the strategic fit of PharmaCorp’s new drug pipeline with MediInvest’s portfolio.

Our Recommendations

We identified several strengths in PharmaCorp, including a strong pipeline of innovative drugs and efficient operational processes. Consequently, we recommended that MediInvest proceed with the acquisition, highlighting the importance of strategic investments in R&D and regulatory compliance to maximise growth potential.

The Results

Thanks to Tudos’ thorough and expedited due diligence, MediInvest was able to make a timely and informed acquisition of PharmaCorp. This early acquisition allowed MediInvest to secure a significant asset without facing competition from other buyers. Within two years, PharmaCorp’s EBITDA had doubled, far exceeding MediInvest’s initial expectations and solidifying the company’s position as a leader in pharmaceutical innovation.

* We take our clients' confidentiality seriously. While we have changed their names, the results are real.

Empowering Businesses with Expert Due Diligence

At Tudos, our mission is to empower businesses by providing them with the insights needed to make informed decisions confidently. We strive to mitigate risks and unveil opportunities through detailed analysis, helping our clients achieve their strategic objectives.