Insight Strategy Advisors (ISA) is an industry-leading market access strategy consulting firm that specializes in healthcare and the life sciences, with an emphasis on developing payer insights into the clinical and economic value of pharmaceuticals. ISA addresses the most difficult value demonstration, pricing, reimbursement, and distribution problems facing its clients and delivers novel and highly impactful solutions to these challenges. Having experienced solid growth over its 15-year operating history, ISA’s owners believed a combination or partnership with either a strategic or financial buyer would help the business scale more effectively. Equiteq was hired as exclusive financial advisor after ISA received various unsolicited offers from certain buyers. Equiteq executed a competitive sale process which led to the successful sale of ISA to Precision Value & Health (Precision), a part of Precision Medicine Group.
The client's situation
Over its 15-year operating history, ISA prospered into a world-class global market access strategy consulting firm with a consistent track record of growth and long-tenured client relationships. The company reached a point in its evolution where combining with a strategic buyer or partnering with a private equity firm would help the business scale more effectively and drive continued growth. In response to unsolicited interest from certain potential suitors, and to capitalize on favorable M&A market conditions – in particular, strong demand for life sciences strategy-focused assets – ISA’s owners hired Equiteq to optimize a potential transaction outcome.
Although ISA had multiple offers already in-hand, Equiteq convinced the owners that additional offers could be generated at substantially better terms through a formal M&A process. Equiteq designed and managed a highly competitive sale process that produced tremendous buyer interest, and provided expert guidance and financial advice to complete the transaction with exceptional terms and with the right strategic buyer.
Shareholder exit goals & deal rationale between buyer & seller
For ISA, the combination with Precision creates compelling opportunities to capitalize on a host of synergies – particularly with Precision’s agency, HEOR, and payer analytics businesses – and to pursue new and deeper client relationships.
The Precision leadership team was impressed with ISA’s comprehensive service offering and market access expertise, along with the company’s highly regarded consultants. The addition of ISA significantly enhances Precision’s existing strengths in market access strategy while strategically expanding expertise in quantitative pricing research, distribution, and contracting strategy. Leveraging existing analytics capabilities, the combination also results in cutting-edge data harmonization and analytics offerings, guiding clients toward clinical and commercial success.
This combination catalyzes strategic growth by strengthening the leadership and premier reputation of both companies, and by creating a more comprehensive solutions platform for the combined client base.
How did Equiteq deliver value to the client?
- Global platform - Equiteq’s global reach helped to significantly expand ISA’s buyer universe (nearly 120 total buyers contacted) to optimize terms and maximize optionality for the client.
- Strong market reputation - Having Equiteq, the knowledge economy M&A specialist, as advisor heightened the perceived competitive tension amongst the buyer group and lent credibility to the overall sale process.
- Proprietary market intelligence - Equiteq leveraged its in-depth understanding of market activity and buyer dynamics to drive more attractive transaction terms and to appropriately position the opportunity with the right buyers.
- Transaction expertise - Through expert M&A execution, Equiteq orchestrated a highly competitive sale process that engendered overwhelming buyer interest (an unprecedented 50+% of the field requested the confidential information memorandum leading to 15 indications of interest), and managed the transaction through to successful completion.
- Value accretion - Equiteq’s expertise and efforts translated to a competitive sale process that supported steady value appreciation and ultimately garnered a purchase price that exceeded ISA’s original, pre-Equiteq offers by over 100%.
Read the press release on this deal here.