Case Study: Maternity Products
Engagement Overview
Fulcrum Consulting Group was engaged to conduct a sell-side market study for a private equity owned maternity product manufacturer. The data generated by the work provided important context to recent financial performance by presenting market size and growth dynamics for multiple equipment and consumable categories in inpatient and consumer segments.
Client
Private Equity
Engagement
Sell-Side Market Study
Industry
Healthcare Equipment
Target Company
Manufacturer of Maternity Products
Key Diligence Issues
Working closely with the private equity client and the management of its portfolio company, Fulcrum delivered a sell side market study with the following areas of focus:
-
Analyzing data from primary and secondary research, Fulcrum sized four distinct equipment markets and their associated consumable product segments. The COVID-19 pandemic brought several material headwinds to the Company and its markets. Most notably, the U.S. experienced an unprecedented decline in total births, birth-setting shifted away from hospitals meaningfully, and maternity equipment replacements were deferred. In preparing for conversations with prospective buyers, quantifying the impact of these levers among others was essential.
-
Fulcrum built a large sample of interviews with the Company’s inpatient and consumer customers to assess satisfaction and the stability of its market position. In addition to completing interviews on behalf of the Company, Fulcrum also collected data from a representative sample of over 580 new mothers using an online survey. In addition to supporting the development of key market sizing inputs, primary data informed understanding of other relevant due diligence considerations. Findings for each channel included purchase decision making behaviors, product performance, the Company’s reputation, and its competitive positioning in the manufacturing landscape.
-
In a mature and competitive market, understanding the positioning of the Company across channels and equipment categories was important. Fulcrum’s primary research allowed for deeper understanding of key decision makers and influencers, as well as what mattered most to these stakeholders. Feedback from distributors of durable medical equipment (DMEs) was also collected. Related findings allowed for a more valuable depiction of the Company and its products relative to competitors. Adjacent product markets were considered, in support of articulating future growth levers.
Approach
Primary Research: Fulcrum conducted extensive primary research targeting multiple audiences on both a blind and introduced basis. In total, Fulcrum conducted roughly 70 phone interviews with institutional decision makers and 650 online surveys with new mothers. Primary research was collected through phone interviews and multiple custom online surveys to increase speed to insight for the client.
Impact
When engaged to support sell side activities, Fulcrum partners closely with management teams and investment banking advisors to develop an accurate view of market conditions and pre-empt buyer questions.
Fulcrum completed its research and delivered a full draft report in under 5 weeks. Following delivery of the report, Fulcrum’s consulting team was available to respond to ad hoc questions via email and scheduled calls with prospective buyers.
Armed with a robust fact base, Fulcrum clients can proceed with conviction and speed.
