In a rapidly evolving healthcare landscape, Clinical Research Site owners face numerous challenges—from managing operational demands to hiring and new regulations. For those considering selling their sites, achieving the best valuation is critical. At Evergreen M&A, we specialize in helping Clinical Research Site owners maximize the value of their business.
This case study highlights how we recently helped a Research Site owner secure a significantly better offer through our strategic approach. If you have questions while reviewing this material, please reach out to President, Gary Behler at gary@evergreenforfounders.com. Gary has helped Clinical Research Site owners in your exact position!
The Challenge
The client owned a mid-sized clinical research site generating $2 million of EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). The client was initially approached by a buyer offering $13 million for the business, a 6.5x multiple of EBITDA. While the offer was tempting, the client felt the business was worth more but lacked the expertise and market access (not to mention the time!) to negotiate a better deal.
Our Approach
When the client partnered with Evergreen M&A, we immediately implemented a comprehensive strategy:
- Market Analysis: We conducted an in-depth analysis of the clinical research market, identifying active buyers willing to pay premium multiples for high-performing sites in the specific geography and area of study.
- Valuation Optimization: Our team examined the site’s financials and identified areas to enhance the perceived value, including highlighting its strong sponsor relationships, high enrollment rates, and robust pipeline of trials.
- Competitive Bidding: Instead of relying on a single offer, we initiated a competitive bidding process, bringing multiple interested parties to the table.
- Negotiation Expertise: Leveraging our deep industry knowledge, we strategically negotiated terms that aligned with the client’s goals.
The Outcome
Through our efforts, we secured multiple offers for the client, with the highest and final sale bid reaching $18 million—$5M more than the initial offer. This new deal represented a 9x EBITDA multiple, far exceeding the industry average for similar sites.
Key Takeaways
This case underscores the importance of having experienced M&A advisors when selling a clinical research site. Here are three lessons for site owners considering a sale:
- Know Your Worth: The initial offer is rarely the best offer. Comprehensive market analysis can reveal your site’s true value.
- Create Competition: A competitive bidding environment drives up valuations and ensures you receive the best possible offer and deal structure.
- Leverage Expertise: Partnering with an experienced advisor like Evergreen M&A can make the difference between a fair deal and an exceptional one.
Why Choose Evergreen M&A?
Our team specializes in helping Clinical Research Site owners unlock the full value of their business. From detailed valuations to skillful negotiations, we provide end-to-end support to ensure you achieve the best possible outcome. In this case, our client walked away with $5 million more than the original offer—a life-changing difference that underscores the value of expert guidance.
If you’re a Clinical Research Site owner considering a sale, let us help you achieve your goals. Contact us today to learn how we can assist you in maximizing the value of your business. Complete the form below or reach out to Gary, gary@evergreenforfounders.com.
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