Bolt-on Origination and Leadership Evaluation

In November 2020, LCap was engaged by a private equity backed healthcare business to help map out their potential bolt-on origination landscape and to use Leadership Dynamics to evaluate the leaders within these businesses to understand which, if any, could increase their value creation potential. After mapping the list, we applied our Transaction Propensity algorithm to help assess which of the businesses were more likely to transact in the near future.

The key questions the client was looking to answer included:

• What does the business landscape look like with the Monitoring Centres, Data & Analytics, and Clinical Assessment markets in the UK?

• Which assets are more likely than others to transact in the near future?

• Are there any leaders in the identified businesses who could increase the value creation potential of the target company?

In order to properly evaluate the market and the leadership teams within identified businesses, LCap undertook a 4-week Deal Origination and Leadership Dynamics project.

This process involved engagement with senior stakeholders in the target company and their private equity backers to define the gates against which we would evaluate the market against. Additionally,

Our key findings included:

1. Nine high quality assets with a Transaction Propensity score of above 60%.

2. 12 leaders within these businesses who could provide the target with a high propensity to deliver their value creation thesis.

This analysis provided the target company with a clear landscape and roadmap to deliver a tactical and strategic acquisition strategy, as well as a rich understanding of the value these businesses could provide from a leadership perspective.