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Customer Segmentation + Online Healthcare Service Provider

Overcoming the Impact of COVID-19 and Preparing for a New Future in Healthcare M&A

The healthcare sector is facing tumultuous times in 2020. With the widespread COVID-19 pandemic, major business operations are disrupted, hospitals are overloaded, medical professionals are overworked, and healthcare institutions’ boards attempt to maintain normalcy. Healthcare M&A is one such crucial segment of the healthcare sector that was nearly brought to a screeching halt in the second quarter of 2020.

An increasing number of cases in North American countries and some parts of Europe and APAC have worsened the state of economies and industries. Although the healthcare and pharmaceutical industries have devoted their time and effort to the COVID-19 pandemic, the world is still a long way from a vaccine or normalcy of any kind. Consequently, this poses a challenge for the aforementioned hospitals, medical professionals, and healthcare institutions’ boards.

Currently, healthcare institutions are in the midst of a crisis with no clear ending. While investor support has increased due to the increasing need for healthcare globally, social and political unrest, struggling economies, and volatility in financial markets are testing the healthcare industry. Healthcare M&A may be one of the most effective solutions to this crisis.

In this article, Infiniti’s M&A support team has detailed the impact of the COVID-19 crisis on healthcare M&A, positive factors influencing the recovery of healthcare M&A, and the importance of M&A support.

The COVID-19 crisis has severely impacted healthcare M&A. To learn the business implications of COVID-19 on healthcare M&A, speak to our industry experts.

The Impact of COVID-19 on Healthcare M&A

The COVID-19 pandemic has taken a substantial toll on developing healthcare mergers and ongoing healthcare M&A deals. Infiniti’s experts identified the following three major challenges that healthcare institutions can expect to impact the healthcare M&A process:

Healthcare M&A + M&A Support

Regulatory Delays

Nationwide lockdowns in countries, including the United States, New Zealand, and the United Kingdom, has caused a severe delay in acquiring regulatory clearance. With all operations on hold, government bodies focusing on COVID-19 related issues, and professionals being forced to work from home, all-important regulatory approval processes have been on hold. However, companies can fast track their M&A processes by ensuring other parts of the process have been completed before the situation normalizes.

Changing Valuations

The impact of COVID-19 on healthcare M&A participants in ongoing deals will potentially change both the buyer and the seller’s valuation. This may lead to the collapse of previous deals or the need for re-valuation of both parties. Revision of the purchase price and financial statements accounting for the COVID-19 impact may help fast-track this process. However, this may still impact potential or ongoing healthcare mergers due to the continuing effects of COVID-19 and an unclear deadline on the crisis.

Due Diligence and Third-Party Approval

Healthcare M&A requires rigorous due diligence from both parties involved. Due to the lockdowns, new safety and hygiene protocols, and the need for social distancing, this process has been delayed, if not stopped. Additionally, both parties may request another round of thorough due diligence in the case of ongoing mergers. Further, third party activities such as audits, on-site visits, and inspections will be delayed, slowing down the M&A process for healthcare institutions.

Understanding the challenges of healthcare M&A is the first step towards successful mergers for healthcare companies. To gain a more comprehensive understanding of the challenges and how your organization can tackle them, request more information.

The Path to Recovery

The world is working towards recovery, pharmaceutical, and healthcare sectors worldwide are attempting to develop a vaccine. Simultaneously, governments are taking initiatives and providing support to industries to reduce the COVID-19 crisis’s impact. However, this process is expected to be slow and long-drawn. Therefore, Infiniti’s experts have highlighted the following two minor factors positively impacting healthcare M&A:

  • The hospital segment, innovation-focused biotech stocks, and large pharma companies may see a surge in valuation due to the high dependence on hospitals and the ongoing work to find a vaccine. This may encourage multiple buy-outs and influence extremely attractive valuations.
  • The capital position of private equity firms is expected to provide them with the opportunity to assess and capture resilient assets shortly.

Although there are limited positive factors influencing healthcare M&A currently, increasing demand for healthcare services and relatively minimal disruptions may fuel growth in this space. However, companies must evaluate their M&A partners and enter into healthcare mergers cautiously in these challenging times.

Importance of M&A Support during the Healthcare M&A Process

The recovering healthcare M&A sector has yet to face various challenges posed by the jarring COVID-19 crisis. As companies continue, plan, or complete deals, they must evaluate all potential risks and gain a comprehensive understanding of their partners. Infiniti’s M&A support solutions enable companies to identify, assess, and prepare for all the factors that influence any healthcare M&A.

Infiniti’s M&A support also provides healthcare companies with the following:

  • Assistance with identifying ideal partnerships and potentially beneficial mergers
  • Expert insights into appropriate valuation and important decisions regarding transactions and investments
  • A comprehensive understanding of every stage and process in the healthcare M&A process
  • Data-drive insights that also account for the changing landscape and current competitive scenario of the healthcare industry

Infiniti’s M & A support experts can help companies tackle the challenges caused by the COVID-19 pandemic and identify and evaluate the risks involved in potential deals. This will enable companies to stay a step ahead of competitors, identify and assess ideal opportunities, and keep abreast of all factors influencing the healthcare M&A process.

Leveraging Infiniti’s M&A support solutions can help identify the ideal partnership, maintain business continuity through the COVID-19, and overcome the business implications of this crisis. Request a FREE proposal to learn more about the value of M&A support solutions in the recovering healthcare M&A space.

CPG industry challenges

Preparing to Combat CPG Industry Challenges in the US Due to Coronavirus

As the COVID-19 situation unfolds across the globe, it presents new operational and leadership challenges for CPG companies. As a result of the crisis, there is a seismic shift in the way consumers shop and what they shop for, creating new CPG industry challenges. The US has seen an exponential increase in the coronavirus cases over the last fortnight. This has left players grappling with new CPG industry challenges relating to how to manage the demand-supply inadequacies, formulate an action plan to turbocharge logistics flexibility, and to adjust the existing commercial strategy to suit the new norms. To address the crisis head-on and ensure business continuity, companies must respond to these new CPG industry challenges by quickly rolling out contingency plans while doing their part to minimize the spread of the virus.

Lessons for US CPG companies from other infected countries

A common CPG industry tre18nd and the coronavirus spreads is that consumers are increasingly stocking up essentials and grocery items, while the demand for non-essentials have drastically declined, posing new CPG industry challenges. US consumer goods companies can learn from the mistakes of other countries and better prepare themselves to face this black swan event. Based on the analysis of our CPG industry experts on the impact of COVID-19 in countries like China and Italy, four main category archetypes have emerged and are most likely to show a similar trend in the US:

  • There is a huge spike in the demand for categories such as health and hygiene (hand sanitizers and disinfectant masks), instant meals, and medical supplies. These items are being rapidly undersupplied across channels which in turn results in rigid turnover and frequent out-of-stock situations.
  • CPG categories such as shelf-stable groceries, daily hygiene products, and bottled water face constrained supply and reduced stock-levels.
  • Decline in non-essential CPG product demand in categories including snacks and savories, soft drinks, personal care products, and pet food.
  • Steep decline in luxury product sales including cosmetics, alcoholic beverages, and confectionery.

As more consumers are shifting to online channels for purchases, this creates new CPG industry challenges for players in terms of adapting their logistics and supply chain to this new trend. Furthermore, these spikes and dips in demand have created intense stress for CPG companies and require them to rapidly adapt their strategies for production, transportation and distribution, key account management, and marketing. 

During times of crisis like this, it is critical for companies in the CPG industry to take calculative and well-executed measures to ensure business continuity in the long run. Request a free proposal to know how industry experts at Infiniti Research can help you plan your next steps during the COVID-19 situation.

Action plan to combat CPG industry challenges due to COVID-19

In countries like China and the UK, CPG companies have faced intensified challenges due to the short-term nature of their contingency plans. To exacerbate the situation, travel restrictions across countries have created logistical bottlenecks, further worsening the existing inbound and outbound supply chain challenges. Here are some strategies for players in the US to effectively combat CPG industry challenges due to the COVID-19 crisis and react effectively to this unprecedented business shock.

Review production plan and inventory management

The need of the hour for CPG companies is to define a contingency plan to ensure supply continuity. Companies in the CPG industry must determine the weakest links in their supply chain including raw materials, packaging, or workforce and build strategies to address these issues in the order of priority.

Build logistics flexibility

Working with local authorities to understand the COVID-19 hotspots and lockdown areas will help companies to better plan the logistics and delivery to these territories. A major revamp would be required for the existing transportation and logistics plan to improve logistics flexibility. Furthermore, steps can be taken to stop or limit the logistics of the non-essential category.

Enable frequent and real-time customer communications

Making account managers constantly available to address customer conversations, especially in critical channels, is vital for companies in the CPG industry during the coronavirus crisis. Working with multi-functional teams to quickly resolve pain points and bottlenecks are essential to provide proactive and quick responses to the customers. CPG companies must also consider creating agreements with manufacturing teams to produce larger batches of specific SKUs in order to increase product availability. 

For more insights, get in touch with an industry expert.

automotive manufacturing

How Automotive Manufacturers Can Bounce Back from the Repercussions of COVID-19

The economic shock resulting from the coronavirus outbreak could pose several challenges to automotive manufacturers, especially those in Asia as major industrialized economies like South Korea, Japan, and Italy are among the most affected regions due to the pandemic. Furthermore, as a majority of the global auto parts supply chain is connected to China, the production shortfalls and supply chain disruptions in China due to the aftermath of the COVID-19 outbreak could have a great impact on automotive manufactures across the globe.  For automotive manufacturers, surviving and emerging stronger at the far end of this crisis will require thinking beyond the next fiscal quarter.

Why the COVID-19 crisis could be extremely challenging for automotive manufacturers

The spread of Coronavirus will affect all sectors, but it could have some serious implications for the automotive industry that could exacerbate problems for players, these include:

  • Difficulty in anticipating potential disruptions as the automotive supply chain lacks transparency beyond their direct vendors
  • Complex global footprint of automotive companies could result in difficulty to develop a synchronized response
  • Automotive sales largely involve test drives and dealership visits by customers. As almost all countries around the globe have imposed lockdown, restrictions to commute, and isolation measures, it becomes nearly impossible to interact with customers and close sales deals.

Considerations for automotive manufacturers to reduce the impact of COVID-19

Ensuring employee protection

Automotive manufacturers must protect employees by making their health the paramount concern and adjusting production accordingly. Automotive companies must follow the most conservative guidelines available among leading global and local health authorities such as the WHO. Health support programs for infected employees and remote working facilities must also be put in place.

Safeguarding the supply chain

Automotive manufacturers can establish a supply chain risk assessment team to evaluate and understand the impact of COVID-19 on their business. Evaluate the key risks involved and create full supply chain transparency by using big data, intelligent systems, and connected ecosystems. This could play a pivotal role in communicating shortages or other supply chain challenges, enabling automotive players to prepare, adapt or adjust accordingly.

Managing manufacturing shutdowns

While the automotive manufacturing sector in China is gradually becoming more stabilized as the nation brings COVID-19 under control, the same is not the case with manufacturers in the US and Europe. There is uncertainty at large in these countries relating to when the automotive manufacturing plants can resume operations. At this juncture, companies in the automotive sector must keep close contact with their suppliers to ensure a quick ramp-up occurs when the market begins to recover. Production levels and schedules can also be adjusted accordingly. Measures must also be taken to ensure workers’ safety, cleanliness, and physical distancing among workers post COVID-19. Embracing industrial IoT concepts can also help manufacturers increase efficiency and prepare protocols for a similar crisis in the future.

Managing declining vehicle sales

The dropping sales in the automotive industry since January 2020 is a clear indicator of the adversity of COVID-19 on automotive sales. Recent US automotive sales forecast also hints at a sharp decline (approximately 10%) as customers are more likely to refrain from automobile purchases after the pandemic. One of the key strategies for automotive companies to manage this situation includes staying connected with customers via mobile and online channels. Rethinking their existing sales model to embracing digital channels and direct sales models is the way forward for companies in the automotive industry. Companies can also consider channeling their lead generation efforts to online car customization tools used by prospective buyers.  Canceled trade shows can also be re-organized through virtual event platforms. Several players in the automotive industry are also contemplating to establish a contactless sales process to meet the increasing health and hygiene requirements.

Automotive companies must develop a rapid response to address the ongoing market challenges due to COVID-19. Our industry experts are helping several companies across the globe achieve this, want more insights?

Coronavirus outbreak

Coronavirus Outbreak: Strategies for CEOs to Navigate the Covid-19 Crisis

In just a small span of time, the coronavirus outbreak has had a major impact worldwide. While some organizations have managed to find ways to maintain productivity, others are still struggling to ensure business continuity. With the fast-changing global situation resulting from the coronavirus outbreak, market activities are disrupted on many levels. Today, consumers are compelled to use online services to fulfill their daily needs, putting many industries under pressure. Also, the government initiatives such as ‘lockdown’ and ‘social distancing’ have taken a direct hit on the transportation and travel industry comprising of hotels, tourist spots, and resorts. Besides, as the cases of infected individuals surge rapidly, business leaders are under great pressure. This compels them to assess the potential risks and act with rapid response solution. To help save your business from the ongoing crisis, our market research experts have outlined critical strategies that business leaders must consider to navigate through the covid-19 crisis.

Strategies for Business Continuity Planning During COVID-19

Secure liquidity

During this crisis, a major challenge for small and medium-sized businesses is access to capital. As revenues take a hit during this period, organizations will need to keep running business operations at lower costs. This majorly applies to small and medium-sized companies where overhead costs like rent, utilities, and payroll leave very little liquid cash to business leaders. To combat this challenge and keep the business running smoothly in the long-run, business leaders will need to look for new ways to provide immediate liquidity. This is where proposals such as ‘Small Business Workforce Stabilization Fund’ can be taken into consideration. This proposal will help small businesses impacted by the covid-19 to avail financial assistance and keep business solvent. Besides, business leaders must focus into developing incident management and scenario plans that are specific to the crisis, communicate effectively to stakeholders, and plan on how to meet government priorities without compromising the safety of the workforce.

In response to coronavirus outbreak, some businesses are developing contingency plans, while others are adapting strategic initiatives. Is your organization prepared to combat the covid-19 pandemic challenges? If not, RFP here and our experts will help you build rapid response plans.

Manage workforce

During these days, talent management is the biggest risk business leaders are talking about. Lack of workforce can put high pressure on business leaders to ensure smooth delivery. This subsequently can result in greater delays, errors, and ultimately customer dissatisfaction. Besides, as people are less willing to move outside their home cities, filling existing vacancies will be tougher for business leaders. As such, business leaders will need to embrace a defensive talent strategy, which focuses on identifying and retaining key contributors. Besides, assessing remote work strategy and attending to immediate global mobility concerns, such as HR policies and first-aid plans can help businesses to efficiently manage the workforce and subsequently maintain productivity.

Ensure supply continuity

As China is the mass exporter of merchandise to countries across the world, the coronavirus outbreak in China has affected almost every industry, including pharmaceuticals, food and beverage, automotive, and consumer electronics. Although the ripple effects of the coronavirus outbreak are difficult to assess, business leaders can take steps to mitigate risks and prevent potential supply chain disruptions. Establishing an alternative supply base can reduce dependency on one specific region. Also, recent studies show that organizations that solely depended on China for parts and raw materials were drastically hit. Even the company’s whose suppliers depended on China for raw materials were hugely affected by the coronavirus outbreak. As such, it’s high time for businesses to avoid reliance on single-source suppliers for raw materials and other requirements.

To ensure supply chain continuity, supply chain leaders must also constantly monitor Tier 1 and Tier 2 suppliers. Suppliers’ production, warehousing, and distribution sites must be monitored and supply chain leaders must make sure that their Tier 1 suppliers have undertaken robust risk management programs.

Are you scrambling to manage the impact caused by the coronavirus outbreak? If yes, our experts can help you to optimize business agility and reduce costs in the face of business uncertainties. For a FREE consultation, contact us here.

Build organizational resilience

According to experts at Infiniti Research, organizations must follow a five-phased approach for building organizational resilience and ensuring ongoing operations.

#1 Defining the business model

Owing to the coronavirus outbreak, business leaders must initially focus into their core customers to ensure the continuity of operations.

#2 Identifying uncertainties caused by coronavirus outbreak

By leveraging SWOT analysis, business leaders can identify uncertainties from the coronavirus outbreak. Besides, information technologies (IT’s) potential uncertainties can also be taken into consideration.

#3 Assessing the coronavirus impact

The third phase involves assessing and categorizing uncertainties based on their severity for the business.

#4 Designing changes

This phase involves developing tentative strategies for executing changes. This phase also involves identifying and leveraging digital technologies and capabilities to facilitate business operations.

#5 Executing changes

In the last phase, business leaders must apply an agile approach to executing the initiatives. Besides, agility, speed, and quality are the key to enabling the continuity of operations.

Want to know how the coronavirus outbreak will impact your business? Request more info and our experts will help you gather data-driven insights and plan your next move to minimize the business impact of the pandemic.

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