Alacrita frequently works on behalf of investors to conduct due diligence on prospective transactions. The two case studies below offer a snapshot of the typical expertise we provide in this area. To learn more about our due diligence services, please click here.
I. Technical and market due diligence of a fast-growing chemistry CRO
Challenge: A private equity investor was considering a transaction in a fast-growing chemistry CRO providing custom synthesis and process development chemistry services for a diverse client base of biotech and pharma companies. The PE investor commissioned Alacrita to conduct in depth technical and market due diligence as well as opine on a proposed relocation to new facilities.
Solution: Alacrita's medicinal and process development chemistry experts reviewed the contents of the online dataroom and conducted site visits of its research facilities and interviews with the management team. No major red flags were identified and moreover our team concluded the company was well placed to grow its business further. The PE investor used Alacrita's output as part of its overall diligence package on the deal which completed shortly afterwards.
II. Due diligence of a biotech's business plan, prospective markets & competitive environment for a VC
Challenge: A VC investor considering an investment in a company with a novel affinity separations and diagnostic technology wanted additional due diligence on the company’s business plan with a focus prospective markets and competitive environment for the technology and the company’s capabilities to exploit these opportunities.
Solution: Alacrita reviewed the contents of the online dataroom and interviewed the company leadership, and conducted market analysis to validate some specific opportunities identified in the business plan. While confirming many of the opportunities, Alacrita's market analysis team identified competitive risks associated with others. Alacrita provided a report putting the target company in the context of the industry sector as a whole. The VC investor used Alacrita's output to complete its diligence and subsequently completed its investment.