Challenge
A private equity firm wanted to evaluate four pharmaceutical services assets in the contract development manufacturing organizations (CDMO) space.
Key diligence questions included:
- Validation of the market size and future growth
- Customer dynamics, including key purchasing criteria (KPC), stickiness, and demand drivers
- Potential synergies to maximize post-transaction value
The GLG Approach
GLG assembled an engagement team led by a former commercial due diligence consultant, along with a 30-year life sciences executive advisor who had experience in more than 10 PE transactions in the CDMO space.
During the four-and-a-half-week effort, the GLG team facilitated:
- 15 expert interviews from competitor and customer perspectives
- A survey of 96 decision makers from branded and generic pharma, over the counter, and nutraceutical customers
Outcome
GLG's due diligence team helped summarize findings about the market landscape, customer dynamics, and growth opportunities into a 70-page report. Before investing, the PE firm considered the four pharma services assets and additional target companies.