A private equity (PE) firm was evaluating an investment in an emerging medical device manufacturer which had a unique but relatively unproven product line. The PE firm believed the company could complement an existing portfolio company and, with a relatively small investment, experience significant growth.
NBI was selected to conduct due diligence on this company, focusing on validating the company’s product lines and business model in view of its core market. Interviewing company founders and conducting primary research, NBI concluded the investment could yield a significant return, but advised the company need to add additional management expertise in order to drive growth.
Based on the case finding, NBI recommended the PE firm proceed with the investment. Within a few months, the PE firm closed the transaction, investing in the target company.more information upon request