Global CDMO Seeks Support and Strategy for Potential Acquisition

A global CDMO was considering the purchase of a mid-size contract development and manufacturing services company. The client was interested in learning more about the market, key competitors, customer opinion, and ultimately whether to acquire the target company; Kineticos was tasked with conducting a due diligence engagement of the potential acquisition.

The first step was to meet with the target company’s management team. After the meeting, Kineticos began the data collection process. Kineticos evaluated the following:

• Evaluation of total and addressable market for the target company by geography
• Identification of key market risks and opportunities
• Analysis of top five competitors and their strengths, weaknesses, and differentiators
• Primary research from industry key opinion leaders (KOL), with many KOLs having direct experience with the target company
• Analysis of target company’s financials compared to available comparisons.

After gathering both primary research and secondary research, in addition to reviewing the target company’s financials and meeting the management team, Kineticos ultimately recommended against acquiring the company.