June 19-20, 2014
Interactive Program | Schedule
Presenting at Life Science Innovation Northwest
International Delegations (Translated Fact Sheets)
Mergers & Acquisitions from A-Z: We’ve been bought – what next? (July 11, 2013)
Recap by Simina Popa, University of Washington
This panel was moderated by Thong Le (WRF Capital). To view a slide deck on the current M&A Market Update and Outlook, click here. Thank you to Henry Gosebruch, JP Morgan Chase.
The panel discussed the current merger and acquisition (M&A) climate in Biotechnology. Although income from mergers and acquisitions has increased by 23% from the last year, this is attributable to only a few $10 billion deals. The number of deals has actually decreased by 10% since last year. Considering that financing rates are still low, there should be more M&As taking place in the industry, but the criteria for deals to move forward has become more stringent. Nevertheless, companies in biotech have more incentive for M&A than those in medical technology industry because they have a robust initial public offering (IPO) market.
The panelists then offered ways for interested parties to negotiate and transition into a successful M&A scenario. Highlights of the discussion included:
- Parties should be prepared for unanticipated delays and costs; often companies have unrealistic expectations of how mergers and acquisitions will proceed.
- David Giuliani, who arranged the sale of Sonicare to Philips, gave advice to companies who are looking for buyers. Some of his tips included:
- The best deal is one where the acquisition makes your product more valuable under the next owner (e.g. Philips elevated the Sonicare market to an international market).
- Don’t be in a position where you have to sell. Seek more than one interested buyer by hiring an investment-banking firm. Be able to walk away from deals that don’t make you happy.
- Start with a strong plan, establish ground rules and ask the acquirer how you can help them and how you can get out of their way as you both head towards a successful conclusion to your business transaction.
- Be transparent with employees during negotiations so that they can focus on their work and not worry about the future.
- Work hard during the first year of the acquisition to drive your assets to success and make the new owner feel good about the acquisition.
- Robert Pelzer, who was on the deal review committee at Novartis, gave advice from the point of view of the acquirer:
- Usually the buyer sees some things in smaller companies as valuable and others as not. Companies should understand what acquirers consider to be valuable.
- As the buyer, figure out how to retain company employees or you could lose the deal.
- Calculations of MPV are critical.
- Mergers (e.g. Orenia and Isotechnica) can consolidate intellectual property and take away the risk of bankruptcy if individual companies cannot raise enough capital.
on Social Media!
Signature Gift Sponsor
Keynote Breakfast Sponsor
Keynote Luncheon Sponsor
Conference Mobile App Sponsor
Coffee Break Sponsor
Plenary Panel Sponsor
Poster Session Sponsor
Women to Watch Sponsor
Public Relations Sponsor
VIP Pre-Conference Reception Sponsor
Onsite Printing Sponsor