ARTICLE SUMMARY:
Buyer perception of business risk is a key determinant of successful medtech M&A, yet many companies fail to appreciate a potential acquirer’s perspective and how it perceives value. We outline the steps that leaders of earlier-stage companies can take to improve their understanding of what prospective acquirers truly want and thus increase the likelihood of a successful transaction. By Peter Meyer and Oded Ben-Joseph, Outcome Capital.
As a catalyst for economic growth and scientific transformation, M&A transactions play a central role in shaping the life sciences sector.As life sciences advisors and transaction professionals, we routinely assist boards and management teams in devising clear, well-informed strategic pathways toward value creation. This role has allowed insight into misconceptions that often lead to unnecessary failure. We have noted a recurring tendency, especially with respect to middle-market transactions, of an almost paradoxical relationship between the perceived value of assets by sellers versus their eventual corporate acquirers.
