Due diligence is the time to really understand in detail the ‘nuts and bolts’ of the company, the opportunity to test assumptions, business cases, customer segments, channels or that the financial submissions are consistent with expectation.
This process can be laborious and very time consuming. It is also the time to ensure what is being presented or reviewed is fact not fiction. The quality of data provided often correlates to the detail warranties buyers need in a sales agreement.
Finishing the deal and company integration
Deal structure and funding typically form the major part of a sales agreement along with warranties and liabilities. Of course deals can be for the shares in a company or its assets. Nevertheless, it is at this stage that it is important to have active involvement from specialist areas including accountants and lawyers.
Integration is often seen as an afterthought yet it will determine how successful an acquisition becomes. In many cases there is vested interest by both the seller and buyer to make this work. To align the processes that the two companies have will be complicated. The gained benefits, such as combined sales force, marketing department and enlarged R&D operations will only be harvested if the integration of the two companies is well managed.
Pivotal Scientific services extend end to end including ‘across deal close’ and implementation though we normally always recommend integration is customer led. Part of our role is to ‘keep the ball rolling’ and chase any outstanding parties on your behalf. Pivotal Scientific would also facilitate ‘Change Management’.
What Stops Mergers & Acquisitions?
Pivotal Scientific believe the primary reason for a merger or acquisition not going ahead is due to a difference in opinion, which in most cases takes form in different expectations of what the company is worth, including different revenue expectation. Due to the time Pivotal Scientific has spent in the field we have built up an a vast range of industry insights and knowledge base which we would use to determine how much your company is worth and provide a realistic forecast of what the company’s revenue could be.
An Example of Pivotal Scientific’s Merger & Acquisition work to date:
- Pivotal Scientific has been involved in M&A since 2011
- We have worked with eight successful acquisitions during that time
- We have links with venture capital, private finance and companies who are all looking for exciting life science acquisitions
- We are currently working on the following projects: