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Just Other Articles - Business Brokers - Bad Practices From The Big Boys
I sit on the board of directors of the Midwest Business Brokers and Intermediaries (MBBI). An attorney from a small Chicago law firm was recently elected to the board. In his first meeting he introduced himself and said he was on the board at a Chicago attorney association. He stood up in front of our board and sa
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
id, "You guys don't have a very good reputation in the legal community.
That certainly got our attention and he went on to explain the reasons why. As I listened to him, it occurred to me that what he was describing was the behaviors of a few of the big national Middle market M&A firms that put on the Business Se
That certainly got our attention and he went on to explain the reasons why. As I listened to him, it occurred to me that what he was describing was the behaviors of a few of the big national Middle market M&A firms that put on the Business Se
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
ler Seminars. Because these firms have so much marketing muscle, they effectively become the face of our profession. No wonder the legal profession does not embrace us.
I walked up to him after the meeting and asked him if I could meet with him and share with him another view of our profession. As our meeting dat
I walked up to him after the meeting and asked him if I could meet with him and share with him another view of our profession. As our meeting dat
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
approached, I was contacted by a business owner who had located me through a Google search (we write a lot of articles) and told me his sad story.
This was a small company that I would describe as being in the pre-profit stage. This owner had received a series of solicitations inviting him to come to a seminar a
This was a small company that I would describe as being in the pre-profit stage. This owner had received a series of solicitations inviting him to come to a seminar a
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
out selling his business. He signed up and was contacted by phone several more times by this company's representatives to make sure he would attend. They were very specific that he should not bring any company logo items to the seminar for confidentiality reasons.
The presentations were very professionally orches
The presentations were very professionally orches
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
trated and this firm gave the attendees the impression that the M&A firm possessed this special skill to take these companies and write a powerful "Book" that would dramatically improve their value to the market. They actually used the words, "We will dress up the Pig." They also said they had a big roster of fore
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
gn buyers and that they had an upcoming conference in Brussels where they would be presenting the seminar attendees' companies to these qualified buyers that were just dying to get their hands on American companies.
In the Seminar's question and answer period, this business owner asked, "Why am I here?" The prese
In the Seminar's question and answer period, this business owner asked, "Why am I here?" The prese
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ter jumped all over that one. Everyone of you in this room was specifically selected because your industry is hot with M&A activity. Later in the presentation, one of the seminar presenters took this owner aside and said he would give him a break on the $37,000 up front fees.
They scheduled a follow-up meeting wh
They scheduled a follow-up meeting wh
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
re this Seminar guy pounded on this poor business owner and below is a cut and paste from the email this seller sent me:
"Thanks a lot for the high speed education this morning. The man explained that because of the vast target market for the Product Name Confidential globally, it's effectiveness and price et
"Thanks a lot for the high speed education this morning. The man explained that because of the vast target market for the Product Name Confidential globally, it's effectiveness and price et
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
c. that Company Name Confidential in the right hands could generate $300,000,000 a year etc. blah blah blah. "It would also give the buyer enhanced stock value. We probably have about 200 qualified buyers right now for you..." He continues, "What you have is an oil well, what the buyer has is a derrick".
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
He's from Texas thus, the oil analogy. "One owner no partners with all their attorneys this will be so easy to sell, so clean neat and tidy..."
Finally, "He left very angry because I told him I wasn't gonna pay them $29,000. So.. I was left to believe that $29,000 was gonna stop his firm from reaping all
Finally, "He left very angry because I told him I wasn't gonna pay them $29,000. So.. I was left to believe that $29,000 was gonna stop his firm from reaping all
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
that "easy money". That just doesn't sound real world enough for me. I don't want to be stuck in their database. I don't know what he was pissed about... They called me I didn't call them. I'm not on any "I wanna sell my company" lists. Hell I just got the company phone number listed about two weeks ago
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
Honest to God I haven't gotten the first Company Name Confidential phone bill yet."
Wow. Where do I begin? How about what a sleazy, dishonest, outrageous load of bull. Luckily this seller had talked to me before his meeting and I warned him about this approach. I had no idea it was quite this misleading. This
Wow. Where do I begin? How about what a sleazy, dishonest, outrageous load of bull. Luckily this seller had talked to me before his meeting and I warned him about this approach. I had no idea it was quite this misleading. This
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
business owner sent this guy packing and he was ticked off because he didn't sell a $29,000 book.
As long as I have gone this far, I might as well expose the whole story. This approach works to sign up business owners with stars in their eyes for $37,000 books. What an awesome business. Write a book with industr
As long as I have gone this far, I might as well expose the whole story. This approach works to sign up business owners with stars in their eyes for $37,000 books. What an awesome business. Write a book with industr
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
boilerplate and some minor analysis compiled by some recent grad analysts sitting in a room at HQ that costs the seminar company a maximum of $2500 to produce. Enter these deals into their inventory database and send it out to the Private Equity Groups and present the list to the foreign buyers.
They lock up the
They lock up the
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
seller with a long contract tail and effectively prevent a legitimate firm from actually working the sale process for 2 to 3 years. If the business is in the 2 in 10 that gets immediate interest, then the seminar firm will have a banker work on it. If you are in the unfortunate 8, you become a passive entry in th
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
ir deal inventory.
Our bankers and the bankers of the 90% of M&A companies that provide a fair value for their services, can only handle effectively four to five simultaneous transactions. If you took this Seminar Company's deal inventory and divided it by the number of bankers, you would find that they have over
Our bankers and the bankers of the 90% of M&A companies that provide a fair value for their services, can only handle effectively four to five simultaneous transactions. If you took this Seminar Company's deal inventory and divided it by the number of bankers, you would find that they have over
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
25 live deals per banker. It is impossible to professionally represent these sellers who have paid an up-front fee of $37,000 for this service.
Foreign buyers are not stupid, they do not pay more for companies than American companies, and they are generally not interested in even looking at an acquisition under
Foreign buyers are not stupid, they do not pay more for companies than American companies, and they are generally not interested in even looking at an acquisition under
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
25 million in revenue. A "book" never sold a company or made it more valuable. Making changes in your company to improve its performance will make it more valuable. A good M&A advisor or your CPA can provide you important input about that.
What really helps you maximize your company's selling price is to have an
What really helps you maximize your company's selling price is to have an
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
&A advisor directly contact the universe of most likely strategic buyers and to get several interested in your company. This results in a competition for your company, often called a soft auction. As these strategic buyers view your company as a must have acquisition, the price and terms are significantly improved
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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