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Case Study 4
For a private equity firm that invests in IT companies serving the pharmaceutical and bio-tech industries

Challenge
The private equity firm needs to ensure the technology, infrastructure, and technical services of the company serving the pharmaceutical industry are sound prior to making an investment in the company. The firm also needs to understand the deficiencies within a candidate company in order to inform their investment decision.

Solution
  • Perform a Technical Due Diligence to evaluate the technology, architecture, detailed designs, and development practices of a candidate company.
  • Review company staff and assess their ability to support and enhance their company’s software products.
  • Evaluate the barrier to entry for other companies to develop competing software products and enter the candidate company’s market.
  • Highlight business and technical shortcomings and recommend actions to improve or correct deficiencies within the candidate company.
  • Aid future strategic IT decisions by providing buy versus build or outsourcing analysis.

Result
The resulting Technical Due Diligence reports help the private equity firm confidently invest $3 – $5 million of venture capital in several companies as well as establish an agenda for short-term initiatives to improve the candidate company’s IT and infrastructure groups. The information in the reports has led to changes in the strategic direction of these companies.



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