Financial advisory for medical device and life sciences companies navigating distress.
Medical device and life sciences companies face distress under unique conditions — FDA regulatory requirements, IP portfolios that represent the majority of enterprise value, and customer relationships built on clinical trust. Lighthouse has advised boards on recapitalization, served as receiver for device manufacturers, and managed dispositions where intellectual property and regulatory approvals drive the valuation.
In medical devices, the value is in the clearances, the patents, and the clinical relationships. We structure every engagement to preserve and monetize the regulatory and intellectual property assets that sophisticated buyers are actually underwriting.
Lighthouse served as advisor for a network of radiology clinics where cashflow issues and shareholder conflicts were jeopardizing operations.
Challenge: An Indianapolis based outpatient radiology group lost multiple large hospital contracts. The company had also launched the acquisition and build out of a new marquee facility resulting in significant negative cash flow, declining reserves, and departure of physicians.
The Solve: Lighthouse developed weekly and monthly cash forecasts by all locations and prepared a plan to market the operations. In consultation with shareholders, Lighthouse evaluated various strategic options, including new investor groups, partial and full sale scenarios, and hybrid options with strategic partners.
The Outcome: Lighthouse led the company through a successful sale of the business to a publicly traded radiology network. The transaction eliminated all liabilities, ensured over 100 employees retained their job and positioned the radiologists to continue with the Northwest Radiology name and flexibility.
How we manage medical sector engagements.
1. IP & Regulatory Inventory: We catalog the company's full IP portfolio: patents, FDA clearances, 510(k)s, clinical data, and trade secrets to understand the asset base that drives value in a medical device transaction.
2. Board & Stakeholder Advisory: We advise the board on fiduciary obligations, recapitalization options, and sale alternatives to provide the financial clarity needed to make defensible decisions under pressure.
3. Buyer Identification & Marketing: We identify strategic and financial buyers who can value the regulatory and IP assets appropriately — running a targeted process rather than a broad auction that risks undervaluation.
4. Transaction Execution: We manage the sale, recapitalization, or wind-down — structuring the transaction to maximize recovery while addressing IP transfer, regulatory continuity, and employee transition requirements.
The best outcomes start with early action.
The sooner we're at the table, the more options remain available. Reach out for a confidential conversation with our team