Situation

Independent 3rd party medical device competitor (sub $100M) developed high impact solution to long standing clinical challenge and was growing rapidly from a very low base with limited market representation. Our competitive product line was dated with inadequate intellectual property to capitalize on this new clinical solution.

Action

Developed a multi step approach to regain competitive footing in this important clinical space and capitalize on the new growth and profitability being generated in a historically static category. Successfully built a trusting social relationship with the competitive technology owners sufficient to convince them of the value of our strong global distribution footprint. Negotiated initial restricted market access to the technology under a new brand to demonstrate willingness and ability to support and market the technology. Subsequently negotiated expanded market access with appropriate protections for their existing brand. Dramatic growth due to the careful market and channel expansion resulted in rapid capacity expansion and a significantly stronger financial tie between the two companies. Finally acquired the company taking control of all intellectual property, manufacturing and product development. The business far exceeded acquisition model performance and maintained double digit growth for many years afterwards.

Result

Acquired business performed well above acquisition models and remains one of the highest performing deals in the acquiring company’s history. Acquired product sustained double digit growth throughout the acquisition plan period and forms the foundation of a clinical solution with paired products which continue to capture markets share 10 years after the initial acquisition.