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Private Equity

We help private equity firms assess potential investment targets and help create greater returns at every stage in the investment cycle.

We apply a flexible and analytics-driven approach across pre-diligence investment screening, action- and impact-oriented portfolio development, and exit strategy. Our global, cross-industry and functional scale and scope in medtech, health systems, and therapeutics bring distinctive insights to create the greatest value.

Examples of our work

Investment screening for a sovereign wealth fund

We worked with the client to explore investment opportunities in medical technology across the globe, which included mapping the overall market and profit pools across the medtech industry and identifying several areas with promising growth drivers. We then applied investment criteria and selected several innovative players for further evaluation.

Due diligence for a cardiovascular contract manufacturer

We helped a large private-equity firm looking to invest in a cardiovascular contract manufacturer analyze market dynamics and growth rates for granular end markets, identify disruptors, and evaluate revenue stability, competitive position, and synergy opportunities in a potential roll-up.

Growth strategy for a private-equity–owned orthopedics-device company

We analyzed drivers of growth and identified an inorganic strategy to double revenue and achieve greater than 25 percent operating margins. Together with the company’s management and private-equity firm, we built a road map with defined steps to pursue and deliver on this strategy.

Go-to-market and commercial excellence for a medical-device–services provider

We advised on an M&A strategy and integration support, including providing manufacturing and development expertise. The solution delivered a 20% improvement in earnings before interest, taxes, depreciation, and amortization.

Featured capabilities

Rapid diligence services: Our flexible and analytics-driven approach to due diligence that draws on our deep industry expertise to offer a wide range of potential configurations—from targeted analysis to fully integrated due diligence

Recovery and transformation services: A unit that focuses on sustained performance improvement and high-impact turnarounds for especially challenging cases, such as distressed companies and underperforming business units, across all industries and geographies Learn more

McKinsey Implementation: A group of specialist teams that works side by side with portfolio companies and offers tailored support to help accelerate the execution of recommendations and improvement plans for measurable bottom-line results Learn more

Pricing for growth: A process by which our pricing experts identify initiatives for portfolio companies to drive near-term earnings before interest and taxes:

  • To capture full pricing potential, we run multiquarter-long pricing transformations that deliver 2 to 3 percent returns on sales within 12 months of implementation.
  • We leverage our knowledge of hospital purchasing, effective competitive strategies, and driving behavior change within the sales force to help clients achieve both top- and bottom-line growth.

Featured experts

Clay Bischoff
Partner, Tokyo
Leads the firm's Private Equity & Principal Investors Practice in Japan and works with clients in life sciences and other industries...

Featured Insights

Article

The growth imperative for medical-device companies
– Recent valuations have been driven by high expectations of growth. Can your company deliver?
Article

Investing in the growing sleep-health economy
– Consumers looking to rest easy could give rise to new opportunities in private equity.
Report

European healthcare—a golden opportunity for private equity
– A review of investment opportunities in Europe

How we help clients