INDUSTRY: Medical Products

OPPORTUNITY: Growth Equity 

DESCRIPTION: Acquired a developer and marketer of innovative, medical soft goods.

BACKGROUND: The company had several issued patents and about 18 sku’s.  It was spun-off from a larger company to management and was undercapitalized.  They were struggling to produce and fulfill the current level of orders, but had a market opportunity to leverage their IP significantly.

VIVARIS:

  • Expanded the IP portfolio dramatically.
  • Invested in new product development and increased the product line to 200 sku’s, including several “category killer” product families.
  • Created a disciplined sales process, including CRM, contact plan, internet presence, regional sales management, lead generation systems.
  • Increased the number of customers from 5 key accounts to 140 active distributors on 5 continents.
  • Partnered with several key opinion leaders in the medical field to drive credibility and adoption of the new products.
  • Secured a bank line of credit to finance working capital.
  • Hired a President and COO to streamline the operations, reduce lead times, and drive efficiencies.
  • Increased sales by about 250% and earnings by over 400%.

PERFORMANCE: Sold the company to a competitor for an 11x EBITDA multiple, giving investors a 7x absolute return or a 68% IRR.