Companies have products that need further development or commercialisation support. A deal brings validation, resources and funding. Companies, large and small are in need of new products. The people responsible for deals are Business Development executives that coordinate the process until closing the deal. We help in identifying products for licensing, identifying corporate partners for licensing deals, strategic planning, preparation of materials for transactions.
It is key in every deal to assess the value. This can only be substantiated if the appropriate projections are made, using industry-accepted principles. The sales of a product can be forecasted using assumptions from independent sources, projecting future cashflows. The cashflows are discounted to generate the Net Present Values which can also be risk-adjusted. Sensitivity analysis provides the range of the valuation. We are experts in Commercial Analysis and Financial Valuations.
Where Intellectual Property is typically the subject of a corporate deal, structuring a deal is complicated and the parties must agree numerous points including milestone payments, level of royalties, development, commercialisation efforts, territories, sharing IP, deal duration, termination and other provisions. A deal must be a win-win for both parties but it is during the negotiations that the value is created for the shareholders. Transactions and structuring deals are core to our expertise.
Whether it's for an investment or for a corporate deal, due diligence is an integral part of the process. Due diligence is performed both commercially and technically. The technical due diligence includes patent checks, scientific data, competitive analysis, development plans, manufacturing, and other areas. Commercial due diligence is closely linked with financial and market analysis, sales and profit projections, sensitivity analysis with risk assumptions and valuations.
Corporate deals take a long time to source, evaluate, negotiate and finalise and many fall through before being signed. Once a deal is put together though, its value to the company becomes often hundreds of millions and may also reach billions over its life time and when the alliance involves both parties working together, a high degree of co-ordination is necessary to avoid issues becoming problems in an alliance. The role of Alliance Management has become necessary.
While relatively few large companies are truly global, many companies become successful in the marketing of their products in their home country or on a regional level, but are normally unable to develop their own infrastructure in other markets. We have a large network of links with licensees and distributors around the world which can facilitate geographical expansion and the introduction of novel healthcare products to new markets for companies that need to expand.
Importantly, our associates are from the specialized Business Development & Licensing function of the industry, we have our own proprietary research and best-practice “Deal Tools”, long experience with multinational companies, worldwide coverage, international culture and expertise, industry knowledge and thousands of personal contacts at senior level in the industry.