Have you considered selling your business? Do you know what the comparable companies in the market have received at close? What steps do you need to take to maximize your return on investment and how does economic timing play into your divestiture?
Organic expansion is slow, technology or capacity acquisition is the only way to grow a business when lofty goals have been requested by your board of directors. That’s Nice scans the market for pre-growth opportunities, making sure you do not overpay for new opportunities.
Capacity and technology expansion are much faster through acquisition. Regional expansion and competitor consolidation can be achieved for targeted facility acquisition. As big pharma divests under-utilized facilities around the world, over build, long-term take or pay supply agreements are available in most developed countries.
Early stage funding for proof of concept is best funded by venture capital, have you considered building IP around your R&D project? Do you need funding for the next stage of growth? Venture capital can continue the life of your concept. Venture capital funding typically starts with $500,000 and can up quickly.
Private equity has become the marriage of the highly trained financial industry with the highly needed ongoing funding of pharma manufacturing. More than 50% of all CDMO’s are now funded by private equity. The highly educated and efficient business executives that run private equity bring great value to a manufacturing operation that is looking for growth or operational funding. Private equity typically starts once a company has $10 million in EBIDTA.
Before venture capital and before private equity funding comes private placement, the first money in to fund a startup is sometimes called angel investment. Private placement investment has the greatest risk, yet can be the most rewarding as a company takes flight and builds the story. There is no minimum with private placement, but it is usually collected from friends and family alongside high net worth individuals.
Mergers & Acquisitions
David Anderson, Ampersand Capital Partners