Lunch & Learn with Medi-Vantage – Preparing to be Acquired

M2D2 Lunch & Learn @ Tue Sep 10, 2019 11am - 1pm (Free)

Medical device companies are in acquisition mode! Don’t miss lunch and a review of acquisition do’s and don’ts with the Medi-Vantage medtech advisory team.

Medi-Vantage performs due diligence for a number of medical device companies to learn if (and how) the acquisition truly meets all the claims the start-up makes and to assess the true market potential. When helping with fundraising, we help to hone pitch decks and validate assumptions.

Medi-Vantage is an advisory firm supporting global healthcare technology innovators on product, market and business strategy with the goal of optimizing the value of their innovations. Since 2007, Medi-Vantage has worked with >250 companies, helping them through key product decisions, fundraising and strategic transactions like M&A.

Medi-Vantage’s founder and CEO, Maria Shepherd, will present insights from their experience with early stage companies and answer questions.

Maria Shepherd Moderating Panel at AdvaMed MedTech Conference


Maria Shepherd, president of Medi-Vantage will be moderating a panel at AdvaMed 2019: What Do Hospital Administrators Really Want?

ACOs hold the keys to the castle of value based healthcare.

Three hospital administrators from ACOs will join Maria as panelists, to share trends in their organizations and discuss the impact and changes their ACO is seeing in providing healthcare in the United States.

  • Jeanne O’Brien, CEO, Value Care Alliance

  • Shannon Kane, Director of ACO Analytics, Value Care Alliance

  • Susan Martin, CFO, Middlesex Hospital

Come prepared for a robust question and answer session from the audience.

Who is Investing in AI?


For one, Medi-Vantage. Our team is investing heavily in learning about the digital health space. We have hired a digital health subject matter expert to assist with medtech strategy research projects with existing or potential digital health components.

Nobody doubts the significant advantages that digital health, powered by the engines of AI and machine learning, will dramatically bring to the medical device space.

Between 2018 and 2019, the artificial intelligence market was tagged at growth of 154% for all AI based companies, including digital health, reaching a market size of $14.7 B worldwide. While much of this growth is being propelled by tech leaders like Google and Amazon, a significant amount of the growth is coming from startup companies., is one source of information regarding the artificial intelligence investment sector. Many are venture companies that are investing in a broad range or companies (including medical devices) that are incorporating natural language processing, speech recognition, machine learning and deep learning, all powered by the engine that is artificial intelligence.

Top Investors in AI 1,2



Contact Us


  • Medtech product strategy development: legacy product in a commodity space with potential for a meaningful digital health component

  • Medtech price sensitivity analysis

  • M&A third party analysis of a medtech company with a digital health medical element




Case Study: Medtech Acquisition Due Diligence Research in Two Weeks?


Acquiring another medtech company is a difficult process. After you have sent a letter of intent (LOI) and have received the book; a summary of business operations, the industry/market opportunities and financial information, the next activity can be one of the most challenging.

How do you determine the true value of the what the company is selling? Many claims are made by the selling organization, in order to get your company to buy them at the highest possible price:

  • Finding new markets

  • Industry roll-up strategy

  • Getting innovative technology

  • Market window opportunity

  • Product bolt-on strategy

  • Experienced employees

  • Synergy strategy

  • Geographic growth strategy

  • Increasing share of market

  • Diversification strategy

  • Vertical integration strategy

  • Increase supply chain pricing power

  • Adjacent industry strategy

  • Reduce competition

An acquisition involves buying a company and shifting it to the way your organization does business. The objective is to create a new company or augment your existing organization using the proven parts of your business and the best parts of the seller. Buying a start-up in medtech can mean being able to make new, innovative products or having access to novel resources or fresh management talent. An acquisition made poorly means your organization could pay too much for medical device technology that doesn’t have good fit with the needs of the healthcare industry and target audience, possibly resulting in heavy losses for your organization.

Time Is of the Essence

Once your LOI is accepted, your organization may only have weeks to provide an indication of interest. Granted, this expression of interest in making an acquisition is non-binding, but it is also a formal written offer.

Case Study

A Medi-Vantage (MV) client had just signed an LOI for a possible acquisition and needed to understand the market dynamics of the new organization. The seller claimed that the market was growing at a CAGR of high single digits, that the several new applications were in development that had great financial promise, and that the target physician audience was the leading decision maker in the purchase of the product.

A first offer was scheduled for three weeks from the LOI and the client needed Medi-Vantage to validate the claims of the selling company within two weeks to give management time to assess the findings and agree upon the value of the acquisition. Our research involved questions like:

  • What are the patient treatment trends and new indications in the market?

    • How many procedures would be addressed by the new indications?

  • Which are the leading brands used; what are the clinical advantages and differentiators?

  • What process do the target physicians and hospital administrators use to evaluate new products and what is the decision-making process?

  • What is the role of the medtech manufacturer in maintaining the business?

MV strategy research found that the acquisition had value for our client, but not to the level presented by the selling company. Two of the three new indications for the medical device technology were very early stage and would not have clinical data to support them for several years. The third indication had better clinical data but was also an area of turf battle between surgeons and the target physicians. While significant brand loyalty remained, the competitive products where not highly differentiated from that of the selling company. A significant selling effort would be required by the MV client. All this information changed the value of the first offer.

The MV process of performing due diligence strategy research in two weeks

Our client alerted us to the possibility of a LOI two weeks prior to deciding to send an LOI, so that MV could alert all the parties (subject matter expert interviewers, real time recruiting team) that the project could potentially surface and, if so, would require urgent attention. On the day of sending the LOI, our client was on the phone with the MV team to develop a recruiting screener for the due diligence. The screener was written and approved that evening. Rapid recruiting of respondents began, and the first interview was scheduled for two days later. All the research was double blinded. Within ten days, all interviews were complete, and the summary report was issued to client management two weeks from the date of the LOI. Management had several questions for the MV team, which were addressed in a conference call and through follow up emails from MV to respondents where clarification of details was necessary. Follow up emails were blinded from the client. Additional incentives were paid to respondent for prompt response to the emailed questions, and the turnaround of answers was done in a day.

Looking for a partner with key insights from clinicians & hospital administrators?


  • Medtech product strategy development: legacy product in a commodity space

  • Medtech price sensitivity analysis

  • M&A third party analysis

Will Surgeons Lacking Robotic Surgery Skills Become Obsolete?

A few as 8 years ago, many medtech strategists (with experience presenting to the Value Analysis Committee) said it couldn’t be done. Robots and their high priced accessories could not be sold at the enormous price premium Intuitive Surgical commands. Since then Intuitive Surgical has had several years of profitable growth and have returned to their original value proposition. They claim that they have surpassed 5 million surgeries by expanding the value of minimally invasive surgery, through innovation such as integrated systems and single port technology. Their goal is to continue to re-invent minimally invasive surgical solutions that decrease variability in surgery and improve patient outcomes at the same time.

A Medtech R&D Pain Point Can Be Identified Through Observational Research

A Medtech R&D Pain Point Can Be Identified Through Observational Research

It is always good to learn from other industries. In a study from PricewaterhouseCoopers (PWC), a project team from Stanley Black & Decker (SB&D), was recognized as a “high-leverage innovator,” a company that outpaced other industry members in terms of financial success while downsizing spend on R&D.