CORPORATE DUE DILIGENCE / PROJECT RISK ASSESSMENT

Assignment:

Our client, a Fortune 50 healthcare company was negotiating a distribution partnership with a start-up device company, involving a complex automated instrument/consumable system still under development.

BMG was contracted to assist in a corporate-level team assessment of the proposed partner’s instrument development program. Our specific charter was to:

a) evaluate the overall product development program, identifying risks and true status

b) appraise the maturity, robustness and manufacturing readiness of the product design

c) assess the proposed manufacturing supply chain

Approach:

BMG analyzed advance materials provided by the client, and conducted preparatory discussions with senior management at the start-up to explore general program issues and properly set expectations for a detailed on-site review. We also participated in advance strategy sessions with other members of the due diligence team via teleconference, and assisted the client team leader with structuring the agenda for the upcoming site visit.

BMG was an active player in a two-day site visit to the device company, driving the detailed Program Review / Design Review sessions with the development team and senior staff. At BMG’s recommendation - and with the client’s endorsement - the site visit was conducted as a constructive working session. Findings and concerns were discussed interactively, and in many cases were resolved during the site visit.

BMG also conducted similar assessment visits with two key manufacturing partners.

Results:

BMG's findings were summarized for the client in PowerPoint format, providing a condensed executive level assessment for senior management review. Supporting detail was provided in a concise 15-page report, including delineation of specific risk areas and solid recommendations for resolving areas of concern.

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