HealthTech Platform Assessment and Recommendations
Healthcare companies that have a strong technology component are valued an average of 17.1 times earnings, significantly outperforming the broader healthcare industry.
For this reason, the portfolio company assessed by PIP in this due diligence, which had a proprietary healthcare PaaS offering, presented high-potential value creation. Our Private Equity client needed validation that the acquisition of this portfolio company and its platform could deliver on the promise of growth.
“Our Private Equity client reached out to PIP because they knew from talking with those in the industry that our technological expertise, pragmatism, and value-creation focus made us the ideal partner for this due diligence.”
John H. Bisack III
President, Managing Director & Founder | Performance Improvement Partners
Platform Deep Dive & HIPAA Compliance Review
To determine both current and future potential of the healthtech platform, PIP assessed its capabilities and HIPAA compliance alignment as part of the due diligence.
Did the platform have bugs or issues that would hinder its growth potential? Our client needed to determine if the platform capabilities were functioning as intended.
The platform dealt with personal health information (PHI), so it was essential that PIP ascertain whether the platform complied with HIPAA regulations.
To move forward with the acquisition, our client needed to understand whether support and maintenance were robust — and what processes were needed to maintain functionality.
Key to tech-enabled value creation is scalability. As a proprietary PaaS software, the team needed to determine whether the platform could scale for potentially new features, add-on acquisitions, and larger markets.
In the end, our client needed to understand how the technology could support a value creation model, from both a technological and organizational perspective.
“This pre-acquisition technology due diligence was critical to our client, who saw the opportunity — and inherent risks — in acquiring a healthtech platform. It was this need to understand the functionality and maintenance, not to mention HIPAA regulatory compliance, that made the due diligence necessary.”