Acquiring an Insolvent Medical Device Company

Acquiring an Insolvent Medical Device Company

The Challenge

Our client’s management team faced the daunting task of acquiring an insolvent medical device manufacturer through a competitive bidding process for a going-concern sale following an assignment for the benefit of creditors. This challenge required swift action to secure the acquisition by making a winning bid, all while navigating a complex web of business relationships and adhering to stringent regulatory standards.

Three Keys to Success

Quick and Decisive Negotiation

Through strategic negotiation and meticulous planning, we successfully acquired the assets of the manufacturer and assumed some of the liabilities. This allowed the bid submitted to be selected by the trustee, all while safeguardiing essential healthcare provider customer relationships and ensuring the continuity of the supply chain. By preserving these critical connections, we maintained and enhanced the enterprise value, demonstrating the new acquirer’s commitment to sustainable growth and operational excellence.

Preserving Key Relationships

Our approach prioritized the preservation of vital customer and supplier relationships. By focusing on maintaining these connections, we ensured that the transition was seamless and that our partners continued to receive the high level of service they expect. This commitment to relationship management was pivotal in maintaining trust and operational stability throughout the acquisition process.

Enhancing Enterprise Value

The acquisition was structured to not only resolve existing liabilities but also to enhance the overall enterprise value. By addressing creditor claims and ensuring regulatory compliance, we created a robust framework for future growth. This strategic approach positioned the new company to capitalize on new opportunities while reinforcing its market position in the highly regulated healthcare industry.

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