What MedTech Revenue Really Depends On
Article
In MedTech, enterprise value is tied to the integrity of the relationships driving sales: surgeons, distributors and sub-distributors, physician-owned entities and the hospitals that buy. When an arrangement turns out to be improper, the revenue it generated can walk out the door.
For a buyer, compliance diligence is also revenue diligence. A target’s clinical and distribution relationships come with its products. If part of its revenue depends on relationships that will not survive the buyer’s compliance standards, that revenue is overvalued.
Our latest perspective looks at why the relationships behind sales are part of what a business is worth, and how investigative due diligence can test them before capital is committed.
