How do you make the most out of your next deal? With a strong plan of attack, of course. Join us for the Product Valuation and Deal Structuring: Business Development Masterclass. This intensive and in-depth course in product valuation and deal structuring will provide you with definitive advantages during future negotiations. During the course you will examine best practices for assessing and valuing assets with interactive case studies and group discussion. You will gain an insight into both the buy and sell perspective and how each arrives at their negotiating positions. Armed with the skills acquired in this course, you will have the confidence to calculate and negotiate the financial aspects of transactions involving the divestiture, transfer and acquisition of biopharm technology rights.
Read a snippet of an interview from the instructor, Joe Dillon.
What are the main challenges for product valuation or for companies/business/individuals having to do product valuation on an asset?
I think one of the main challenges that they run into, which may also be less recognized, is having a good view of how their product differentiates from other products that are in development by other companies. Or other technologies and products that are being presented to and valued by potential buyers.
By buyers I mean usually it’s the device, diagnostic and pharma companies looking to acquire assets then complete the development and commercialize them. But these buyers are looking at multiple opportunities, almost always, even in very specific areas. For instance, they might be looking for a Phase II asset in a particular area of immunology and if you have that Phase II asset, you can be assured that the people you are talking to are probably also looking at 4, 5, 6, or even 7 other products similar to yours.
So, what I see as a real challenge with some of the sellers, and the sellers are biotech companies and device diagnostics companies who are looking for buyers, is presenting a really good understanding of how their opportunity differentiates from the other choices that these buyers might have. Knowing that differentiation, they must then translate that into a valuation that makes sense. Years back, people just figured assets that looked similar had similar values. Now we know that assets that may look similar on the surface really aren’t all that similar and may have very different values.
Those are some of the biggest challenges. And then of course, after all of that is considered, there's the challenge of assessing the risk involved in this.