Sector: Healthcare Diagnostics
Transaction Type: Full business sale to international strategic acquirer
Location: Sydney NSW Australia

Client Profile

A founder-led diagnostics group with five medical centres operating across metropolitan and regional areas. The business had strong recurring revenue, high-margin diagnostic services, and proprietary AI-enhanced pathology tools. Despite its operational maturity, the business had not previously engaged in a formal exit process.

Challenge

The founders were receiving inbound interest but lacked the structure, clarity, and bandwidth to engage strategically. Previous efforts with a generalist broker had resulted in poor buyer engagement and undervaluation. Key challenges included:

  • No formal valuation or strategic positioning
  • Concerns around confidentiality and staff retention
  • Unclear articulation of the company’s IP and technology value
  • Complexity in regulatory compliance and clinical licencing

Cavari’s Role

Cavari was engaged as the exclusive sell-side advisor. Our scope included:

  • Full transaction readiness (IP audit, licencing validation, model rebuild)
  • Strategic positioning and narrative refinement
  • AI-powered global buyer mapping and outreach
  • Preparation of investor-grade IM and data room
  • End-to-end deal management and negotiation

Strategic Approach

Cavari commenced with a deal readiness sprint to address data gaps, compliance risks, and misaligned valuation expectations. We rebuilt the financial model to reflect forward earnings and embedded efficiency metrics, highlighting the scalable potential of the AI-driven diagnostics platform.

Using Cavari’s AI-enhanced buyer engine, we identified and prioritised a targeted list of 30+ acquirers across Asia-Pacific, North America, and Europe. The company was positioned as a strategic bolt-on for multinational consolidators. We implemented a controlled release of information, creating competition across selected parties.

Outcome

  • Sold to a global diagnostics acquirer at a 9.8x EBITDA multiple
  • Achieved a 22% premium above sector benchmarks
  • Closed within 14 weeks of process commencement
  • Founders secured an attractive earn-out and joined the acquirer’s APAC growth team
  • Staff retention exceeded 90%, with no regulatory or licencing delays

Strategic Insight

In founder-led healthcare businesses, successful exits are defined by narrative clarity, compliance confidence, and buyer alignment. Cavari’s model ensures that strategic value especially around IP and technology is fully realised, not discounted.