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Technology due diligence

Clinical healthcare services

UK clinical telemedicine service

The target company

  • UK-based remote dermatology services in secondary healthcare, with majority of revenues from health insurers.

  • Clinical diagnosis of skin conditions using a patient app and ‘out of hours’ assessment by physicians.

  • Proprietary technology of mobile app, case management software and image analysis AI.


Key findings

  • 37% of investment period revenues unlikely to
    be achieved.

  • Systematic reduction in Enterprise Value due to transfer of Intellectual Property

It would not be possible to deploy the required AI within the investment timeframe due to the unforeseen need for regulatory certification, and the product roadmap would not deliver the additional revenue-generating services on time.


The shareholding and licensing agreements, plus the technical requirements of scaling the proprietary AI, would lead to transfer of IP to the value of a loss in 3x multiple.


Additional deliverables

  • Design and costing of a realistic technology platform to deliver the investment thesis.

  • Identification of an alternative investment.


We designed a technology platform that could deliver the investment objectives, articulating the technical architecture, costs, skills and schedule to implement, and the associated product roadmap.


And with the investor’s consent, we conducted a global search for an alternative target and identified a more mature company with better technology and a better fit for the investor’s existing portfolio businesses. We provided introductions to the board, a view of the quality of the technology, and an assessment of potential fit within the investor’s portfolio.

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