A global investment firm’s private equity group was unsure of whether a target Healthcare company was a valuable addition to their growing portfolio. They enlisted WGroup to assess the competitive position of the company overall as well as the functionality of a key software platform owned by the company. WGroup assessed the client’s software from all angles (security, scalability, competitiveness and cost implications) and found that several areas for improvement existed. WGroup created a roadmap for the initiatives that mapped out how the client could achieve these goals.

1. Opportunity
A Global Investments firm’s private
equity group needed to assess a
Healthcare company that was ripe for
a takeover.They wished to address the
prospective company’s competitive
advantage- both technologically
and functionally relative to its direct
competitors. Some key areas they
wanted to address were
• Data security (due to
involvement of PHI data),
• System scalability,
• Competitiveness,
• & Cost Implication.
The client brought WGroup in to do
a rapid assessment of IT software to
identify key strengths and weaknesses
from a technical and functional
standpoint translating it to customer
impact, competitive advantage, fit with
company’s future growth, security
and compliance with all relevant legal
requirements. Specifically WGroup
worked on
• Assessing the current state of the
software platform owned by the
Healthcare company along three
parameters (security, scalability
and competitive positioning)
• Helping the Healthcare company
to create a future state software
platform with the goal of developing
quick and pragmatic improvements
to ensure that it met the expected
evolution of the software
landscape, scalability needs as well
as maintainability of software
• Building a roadmap of initiatives
needed to go from current state
to future state showing the most
valuable items that should be
addressed as soon as possible
Approach
WGroup’s approach was to perform
the due diligence and collect the
necessary information through
questionnaires, interviews, demo’s etc.
in order to understand and assess the
current use cases, technical platform,
development environment, security
processes and protocols. As part of the
assessment WGroup also evaluated the
company from an overall prospective
to determine how it was competitively
positioned vs. its direct competitors.
WGroup took the following steps
to gather the necessary information
and make recommendations:
• Performed a baseline assessment
to understand existing software
platform capabilities
• Assessed technology, functionality,
compliance (including security),
strategy, people, process and data
and compared against leading
competitors to identify gaps
Drive Your Business
IT Due Diligence for Private
Equity Firm
Private Equity | IT Assessment
1
AGlobal Investment
firm’s private equity
group was unsure of
whether a target Healthcare
company was a valuable
addition to their growing
portfolio. They enlisted
WGroup to assess the
competitive position of
the company overall as
well as the functionality of
a key software platform
owned by the company.
WGroup Assists a Private Equity Firm with a Due
Diligence IT Assessment for an Acquisition

2. • Analyzed existing platform
software, evaluation approach &
plans and made recommendations
for “quick wins”
• Defined next steps to aggressively
move ahead with evaluation
of recommendations
• Developed a high-level future-state
model and phased roadmap, relative
to people, process and technology
• Provided an overall assessment of
whether the software was clearly
superior to its direct competitors as
a source of clear advantage for the
Healthcare company
Insights & Advice
WGroup assessed the client’s
software from all angles (security,
scalability, competitiveness and cost
implications) and found that several
areas for improvement existed.
WGroup created a roadmap for the
initiatives that mapped out how the
client could achieve these goals.
WGroup’s recommended short-term
goals included security and
functionality:
• Enhancing software mobility
features to allow submissions
through mobile devices and to
match competition offerings
• Substantial enhancements in
network, application and data
security
• Automation of current processing
platform as upper limit to current
business model was envisioned
within 2 years
Mid-term goals addressed scalability
and competition:
• Implementation of personal EHR
solution within its HR offering to
enable better patient disease
prevention
WGroup
2
• Service Oriented Platform with
regional competitive models
scalable across other countries
• Additional skill sets needed
within the organization to enable
all initiatives recommended
Long-term goals included adjustments
to business model and current services:
• Augmentation of current data
with publicly available data
• Analytics across all client data
to enable correlation of disease
onset with other precursors
• Tiering of current services as well
as specific additional services that
were recommended to the client
WGroup recommended several
software investments that the client
could make to address these goals.The
transformation path included what it
would take from a security, technology,
functionality and competitiveness
standpoint. WGroup also outlined the
key emerging trends in the healthcare
software area and what implications
this may have on the client.
In addition, WGroup gathered data
from target’s customers and its
competitors. WGroup addressed the
defensibility of the target company
from insurance companies and other
competitors and how the market
could potentially evolve in the next
few years. WGroup evaluated the
potential liability from security risks
to the target and compared it against
the insurance policies purchased by
the target. WGroup worked with legal
team to assess legal implications of data
privacy in all geographies the company
operated in or planned to operate in.
Finally, multiple platforms used by the
target within different geographies
were evaluated and one target platform
was recommended as the end state.
“The PE firm was able to
assess the statements
of the target company,
evaluate risks and assess
the competitiveness of
the target firm from a
technology perspective to
make an informed decision.
The firm is an enthusiastic
reference for WGroup. “
Pankaj Argarwal
Principal, WGroup

3. Results
This short assessment was used by the
Private Equity firm for making key
decisions on whether or not this
company would be a valuable addition
to their portfolio. As part of the
supporting materials they were
provided with
• Current state of software along
several dimensions such as security,
competitiveness and scalability
• Key business security imperatives/
priorities that software platform
processes and capabilities must
support going forward
• Software platform recommendations
• Initial improvement projects that
are candidates for initiation
• Future strategy, people and data
recommendation groupings
Private Equity
3
Contact Us
WGroup
301 Lindenwood Drive, Suite 301
Malvern, PA 19355
610-854-2700
CPG_OSRNGCS_100312_006
About WGroup
Founded in 1995, WGroup is a boutique management consulting firm
that provides Strategy, Management and Execution Services to
optimize business performance, minimize cost and create value. Our
consultants have years of experience, both as industry executives and
trusted advisors, to help clients think through complicated and pressing
challenges to drive their business forward.
For more information on WGroup, visit http://thinkwgroup.com
WGroup was able to assess
• If target’s technology platform
was unique and superior to its
competitors
• Whether people, processes and
systems were capable of supporting
future growth
• Potential risk exposure not covered
by insurance policies
• Implication of current company
platform and strategy on client
retention and future client signups
• How the market might evolve and
affect this landscape in a significant
manner and countermeasures needed
in medium term
• How the company and local market
compared to international market
segment and its key players
• What actions could be taken to
increase competitiveness, reduce cost,
reduce risk and improve business
value as well as roadmap them as an
implementation plan