The starting position
Today, Seleon GmbH is one of the leading product development partners for medical technology companies in Class I and III. Founded in 1998 and with locations in Heilbronn and Dessau, the company specializes in the development of complex medical technology systems and supplies the entire range of services from the product idea through approval to series production according to international standards. Central areas of competence are in the respiratory and cardiology segments, with specialization in small series production of highly complex technologies. In addition, Seleon offers consulting services for all development-related regulatory issues, international approvals and company certifications. The company, which works for internationally active, well-known medium-sized companies and corporations, achieved sales of just under 20 million euros in 2018 with 100 employees.
At the beginning of the project, bachert&partner finds a company with a turnover of 6 million Euros (2012) and an insufficient profit and liquidity situation. Due to the lack of a future-oriented mission statement, strategic decisions without fortune and an anticipated organizational structure, Seleon GmbH is operating at a deficit at this point. Processes that could be improved, insufficient controlling and the dependence on individual customers add to the difficulties.
As a first step, bachert&partner undertakes the preparation of a future concept, based on IDW S 6, as a basis for the establishment of additional debt financing and accompanies the change management process. The core point of the concept is the concentration on the areas of development, production as well as consulting with the focus on regulatory requirements. In parallel, the exit from the "proprietary products" segment and the out-licensing of the "rehabilitation" division will take place.
The establishment of a controlling system adapted to the corporate structure, particularly in the area of projects, will reduce the high level of blind services that have been carried out to date and ensure that billable services are consistently invoiced. However, the basis for the successful implementation of the concept is the achieved change of sign from a sales-oriented to a profit-oriented thinking at all levels of the company.
The measures at a glance
Streamlining of service portfolio and divestment or sale of proprietary products business
Targeted expansion of core business with sharpening of the claim to be a "partner to national and international medical technology companies”
Initiation and development of the CRO (Clinical Research Operation) unit to round off the service portfolio
Establishment of external financing for peaks
Expansion of project management and controlling as well as contract management
Establishment of management tools and structures
Expansion of the management team to include a production/project specialist
Establishment of an advisory board
The successful turnaround management leads Seleon GmbH back into the profit zone after only 18 months. In the years that followed, substantial growth led to a near tripling of sales and sustained earnings. The EBIT return, which is above average for the industry compared to other market participants, demonstrates the sustainability of the overall process.
The implementation of major international projects further strengthened the company's excellent reputation as a partner to medical technology companies. On this foundation, Seleon is well equipped for the expected changes in the market, for example as a result of the MEEDEV Medical Device Directive.