Client Study

A privately-owned medical company was recognised as a leader in the provision of highly-specialised mental health care services. An initial review of the value of the business by its incumbent advisors raised a concern that it faced limited growth opportunities since the client base did not include any NHS or public sector organisations.

Within the NHS less effective treatments were, at that time,being offered and the apparent lack of opportunity to grow into this market threatened to limit growth and impact negatively on the business and its valuation.

Our approach

The Dow Schofield Watts team was approached to provide an independent assessment and valuation of the business.

We concluded that an in-depth analysis of the marketplace was required to assess the true potential of the business and its target market. Detailed research revealed that the National Institute for Clinical Excellence (“NICE”) was changing the established treatment recommendations for certain mental health conditions and, in fact, was specifically advocating the approach used by our client.

We evaluated upcoming changes to medical procurement legislation which enabled us to assess the market position of the business in the context of its true potential.

 

The outcome

As a direct result of our research, a target market was identified which was ten times the size originally envisaged. By contextualising the business with its potential market we were

able to successfully argue a four-fold increase in its value

.

Client feedback

“In the first instance we weren’t sure what to expect from a valuation company – if anything a fairly black and white, number orientated approach.

Instead we found ourselves working with an astute, highly-efficient and sharp team of individuals who were determined to undertake the most thorough research to understand the issues facing the business. Their in-depth analytical approach resulted in securing crucial information which literally transformed the view of value.

Their ability to argue a case successfully resulted in a valuation that far exceeded our expectations.”

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