Digital health is a unique sub-sector of the healthcare and pharmaceutical industry. The combination of cutting-edge technology with medical expertise results in products and companies that are simply unlike any other.

This means that when it comes to selling your digital health business, you need a set of skills and expertise that is equally one-of-a-kind. Here are our top tips, to help you on your journey.

Digital Health: Selling a Tech-Based Business

Make a plan

The first step in any business sale is to identify what you want to achieve. With thedigital health sector being so dynamic, there is plenty of opportunity for synergistic transactions –whereas a retail pharmacy business might simply be taken over and continue to operate in much the same way as under the previous ownership, tech-based businesses see a lot of activity that is predicated on assimilating the company and the technology stack into the portfolio of the new company with a view to combining two or more technologies into one greater whole.

Determine what you want from the sale of your business –are you just looking to cash out, or do you want to see what you have built used for something specific? This will inform how you go about courting potential buyers and may have an effect on the asking price.

Identify your USPs

The first thing you need to do when you look to sell your digital health business is to identify what makes you stand out. Do you have patented technologies underpinning the way you operate? Are your processes unique and not easily duplicated? Make sure that you have clearly detailed these unique selling points, and have any relevant trademarks, copyrights, and patents to hand for due diligence purposes.

Set your price

The price for your business should represent the fair market value, and be based on a full, accurate, professional valuation. This will take into account the various USPs that you have identified, and the value that they hold in the broader market. Additional considerations will be any contracts you have in place –for technology-based firms, particularly important contracts will be any equipment suppliers and tech support/development personnel.

Find a buyer

If only it was that simple. Finding a buyer means you need to find an individual or company that has not only the money in place to meet your price, but also the knowledge to take your company forward. Corporate culture is also an important factor in finding the right buyer –particularly if there is to be a post-transaction merger.

Pinnacle Pharmacy Group

At Pinnacle, we have been working in the digital health and pharmacy sectors for many years, and have successfully completed multiple complex transactions in the space. Because our mergers and acquisitions team only deals with businesses in this industry, we have an unrivaled knowledge of the market dynamics, the regulations, and the myriad other factors that contribute to ensuring a successful M&A activity.