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Backlog: A Double-Edged Sword in Bioanalytical CRO M&A?

Writer's picture: Veloxity TeamVeloxity Team

In the world of bioanalytical contract research organizations (CROs), the management of project backlogs plays a pivotal role in both day-to-day operations and long-term success. Our latest article delves into how backlog is a critical factor during mergers and acquisitions (M&A) in the bioanalytical CRO space.


In this article we examine the dual nature of backlog—its potential to indicate strong future growth as well as the risks it can pose if not properly managed. A backlog can serve as a valuable asset, signaling high demand and future revenue, especially when it reflects large, stable clients or promising therapeutic areas. However, a backlog that’s growing too quickly or is poorly managed can reveal operational inefficiencies, resource strain and potential client dissatisfaction.


Key questions around backlog data—such as demand, client concentration, project dependencies and revenue forecasts—can provide deep insights during the due diligence process. This article offers a comprehensive guide for investors and CROs to better understand and manage backlogs, ensuring they're positioned for sustainable growth and success in a competitive market.



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