Background and Challenge

In light of the continued innovation in wound care, a private equity (PE) firm was evaluating acquisition targets in this growing market. L.E.K. Consulting was selected to conduct a commercial due diligence assessment of a multimillion dollar wound care provider with a presence in 50 countries. Although the company’s revenues had been declining, the PE firm theorized that it was due to underinvestment in its sales and marketing capabilities, rather than critical shortcomings in its product offerings or operations.

Approach and Recommendations

To scrutinize the PE firm’s thesis about the target company, we conducted the following four-phase due diligence assessment:

  • Market Assessment: We combined its wound care industry experience with focused primary and secondary research to establish its findings. Specifically, we investigated the key drivers of global wound care product demand by segment and geography. The market was expected to continue to experience healthy growth for the forecast period, with the target company’s focus segment mix growing at approximately double the rate of the overall market due to its focus on higher growth advanced and active segments
  • Customer Analysis: We conducted in-depth interviews with clinicians and other market participants in wound care to develop a clear understanding of the target company’s position across channels and how treatment and buying decisions are made
  • Competitive Review: After analyzing the competitive landscape and determining where the target company had advantages, we further benchmarked sales force size and productivity across the industry – and identified select product, geographic, and channel growth opportunities where the target company was underrepresented compared to the competition
  • Synthesis and Recommendations: After gathering and summarizing its findings, we developed revenue forecasts for the target company under several scenarios incorporating various levels of investment


The work completed by us provided the PE firm with the facts and insights required to complete a successful acquisition. Today, the portfolio company is well-positioned to thrive.

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