Strategy for digital behavioral health

Telehealth vendor threatened by AI

KSA245

Centered team and board on 3 strategic pathways

Situation

Telehealth threat from digital

Venture backed behavioral health provider company with a telehealth operation was looking to evaluate the role of digital behavioral health both as a complement and a potential competitor/ substitute for its services.

In addition to determining the role of digital for them in the future, they needed guidance on whether to develop these capabilities in house or to acquire them and, if so, based on what criteria.

What we did

Recommended acquisition

Developed a clear quantitative understanding of the costs and revenue implications of digital BH on their overall business including cannibalization.
Extensive and deep interviews with buyers.
Capability mapping of over 50 potential acquisitions using a range of sources.
Recommended an acquisition with specified criteria.

Deep dive into 15 capability areas

Make vs. buy evaluation – led to acquisition recommendation

Outcome

Huge value inflection

Client got a clear framework to position its services relative to its new digital capabilities as well as an understanding of financial implications.
It acquired one of the digital health companies that we shortlisted based on our criteria.
Client was then itself acquired in a highly successful exit.

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