Finding the Perfect Target
When it comes to engaging with digital health providers, you have many options. We deliver expert assessments on potential targets on tight schedules – from red flag analyses to extensive commercial due diligences.
To build, or to buy, that is the question.
A decision not to be made in haste – as it is critical for success and depending on multiple factors like: size, budget, resources, the availability of targets, and potential target fit – but most importantly on the acquirer’s strategy and company culture. It can be a shock for both sides if you are a multinational pharmaceutical company used to meticulous production processes, acquiring a 10-people agile app development company. Just having the software without the developers who have left is dead capital.
We know from experience what works and what does not. We provide structured guidance for our clients to make an informed decision whether to acquire a digital health solution provider or to build a service from scratch within the context of the German healthcare system.
In a Due Diligence process, it is critical to ask the right questions. We know how to validate our client’s investment hypotheses.
Our qualitative analyses of the acquisition target provide clarity on the target’s fitness for their chosen reimbursement path, their current market performance, market penetration, and how their commercialization strategy can be improved. Very often, only the product or service itself is in the scope of an acquisition – neglecting the required efforts to monetize it within the acquirer’s organization.
We provide a profound understanding of all key drivers of the business case, and a reality check based on market insights and industry experience to calibrate the confidence level.
Technology should not be a black box.
We open the black box of your target’s technology and assess if the often intangible pieces of software and infrastructure are good value for your money.
We answer your most important questions: What is the quality of the software and architecture? Does the development process follow state-of-the-art practices and can the software be maintained? Is the architecture a dead-end or can it be scaled without significant changes? What is the necessary level of software compliance, e.g., is a password policy required by the regulator and does the software fulfil these requirements? Does the software follow OWASP standards without leaking sensitive data if, e.g., HTTP status messages are not managed?
Digital Oxygen and its technology partner analyse your target’s software, architecture, and development processes to provide a concise assessment – in a report that also someone without a degree in advanced computer science can appreciate.
Some details are more relevant than others. Sometimes, understanding the key issues is enough.
We would be happy to turn every stone during a due diligence, but often this does not fit to the acquirer’s timeline or budget. Our experience in the digital health markets allows us to cut right to the chase. We pin-point the target’s most pressing challenges in their specific market environments – such as potential roadblocks in the DiGA listing process.
We provide our clients with everything they need to know to make an informed decision – fast. Nothing more but also nothing less.
Following a systematic approach reduces unwelcome surprises further down the line.
We know the digital health landscape in Germany by heart, including DiGA and DiPA. Scouting and pre-evaluating DTx targets with our expert eye saves our clients valuable time in the selection process. We introduce our clients to founding teams, conduct first interviews, and make sure that the target is up to the mark.
Moreover, we are independent and act on your behalf. Like an architect for your dream house. We will find the best “plumber” and “roofer” which fit your requirements – not targets which happen to be in our start-up portfolio.
Our clients have big plans with their target. We verify the existing product-market fit and help understand the target’s full potential.
By nature, an acquisition target will always claim a perfect product-market. Independent and direct feedback from the point-of-care provides a realistic understanding of relevant needs and requirements of the stakeholders that later decide over the success of the product or service.
With our support, our clients can clearly specify what they expect their digital health solution provider to bring to the table – objectively and independently.
Commercial Due Diligence
Comprehensive evaluation of client’s preferred digital health solution
Often, the devil is in the details. We evaluated a target from A to Z and identified critical issues which allowed our client re-evaluating their purchasing strategy.
Red Flag Due Diligence
Focused evaluation of specific market aspects
We focused our efforts on the most critical new insights for our client, ensuring an efficient complementary evaluation of several targets.
Voice-of-Customer
Study with healthcare professionals and patients on a planned DiGA
The smaller the discussion group, the more open and honest the feedback from the interlocutors. This is particularly evident in the comparison of individual interviews with advisory boards.
Clients and Partners
