Acquiring an Insolvent Medical Device Company
The Challenge
Our client’s management team needed to acquire an insolvent medical‑device manufacturer through a competitive going‑concern sale following an assignment for the benefit of creditors. The window to act was short, the bidding process was crowded, and the deal sat inside a dense web of supplier, customer, and lender relationships, all under strict medical‑device regulatory oversight. We were brought in to help the team shape a winning bid, navigate the stakeholder dynamics, and keep the transaction compliant and executable under intense time pressure.
Three Keys to Success
Quick and Decisive Negotiation
Through focused negotiation and tight execution, we led the acquisition of the manufacturer’s assets and selected liabilities in a competitive bid process. Our bid was chosen by the trustee while preserving critical healthcare‑provider customer relationships and keeping the supply chain intact. By maintaining continuity for key customers, we protected and enhanced enterprise value and signaled the new owner’s commitment to operational discipline.
Preserving Key Relationships
From the outset, we prioritized safeguarding vital customer and supplier relationships. We structured the transition so providers saw minimal disruption and core suppliers stayed engaged on acceptable terms. That relationship‑first approach maintained trust and operational stability during a sensitive ownership change.
Enhancing Enterprise Value
The transaction was structured not only to resolve existing liabilities but to preserve and grow enterprise value. By addressing creditor claims, managing which obligations were assumed, and ensuring regulatory compliance, we created a durable platform for future growth. The new company emerged with a cleaner balance sheet, a stable customer and supplier base, and a stronger position in a tightly regulated healthcare market.
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