Corporate Strategy Development

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Growth Strategy

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Divestiture Strategy

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Capital Investment Strategy

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Market Strategy

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Mergers & Acquisitions Strategy

CHALLENGES: CREATING LONG TERM VALUE FOR STAKEHOLDERS

The mergers and acquisitions (M&A) decision-making process is highly complex in the life science industry due to:

• The pace of technological innovation
• The threat of disruption
• The plethora of emerging companies
• The complex and convoluted IP structures

As history demonstrates, only a small fraction of M&A deals will actually create long-term value for shareholders.  In fact, life sciences companies have been very selective about their M&A activity. They engaged only after having a careful and rigorous analysis of the value that will be created, the market conditions, the evolving customer needs and their own core capabilities.

Scientia Advisors KNOW-HOW

Whether it is an industrial firm looking to move into attractive markets in healthcare or a leading life science firm looking to make a “niche” acquisition to enter a high growth market, an articulated M&A strategy must be part of strategic planning and is an extension of a company's overall growth strategy.

Scientia Advisors has been at the forefront of enabling key strategic M&A decisions globally by:

• Consulting on key aspects of M&A from defining the role of an acquisition to identifying, prioritizing, and valuating target companies.
• Markedly expediting the decision-making process thanks to its disciplined approach, allowing clients to gain a competitive advantage.

SCIENTIA ADVISORS' APPROACH TO M&A STRATEGY

Our M&A Practice addresses the unique aspects of the life science industry—and its complexities.  Our capabilities in M&A include:

• Acquisition screening
• Strategic due diligence

Acquisition Screening
Screening starts with a clearly articulated M&A strategy, where the role of an acquisition is defined and the value it will create is understood.

Scientia Advisors helps clients screen candidates based on the why and the how, with a focused search that not only identifies the right targets, but also gives a head start on the due diligence process. Our extensive database of emerging and established life science companies allows us to quickly draw information about target companies and determine the strategic fit.  Every deal we propose starts with an investment thesis, (a clear statement of how that particular deal will create value for the company,) that will stand the test of time.

Scientia Advisors' Approach to Screening
We’ve screened thousands of companies for our M&A buyer clients. The process typically follows five steps:

• Generate full list of acquisition targets
• Screen targets based on criteria set in the M&A strategy
• Develop detailed profile, investment thesis and valuation for top-priority targets
• Build M&A road map that spells out sequence and timing
• Devise plan to approach targets and develop relationships with them

Strategic Due Diligence
The science of by-the-book due diligence is vital. But it is a meaningless exercise without the art of strategic due diligence, a forward-looking process that helps executives understand how they can create value through an acquisition. Scientia Advisors investigates targets with a nose for what is really important, identifying the key sources of ongoing value.

Scientia Advisors' Approach to Due Diligence
Working alongside the best venture capital and private equity shops, Scientia Advisors has learned that financial buyers have clear advantages over corporate buyers in the area of strategic due diligence. This experience has led us to an approach based on four principles:

• Ask the big questions to confirm clients’ clear investment thesis
• Determine the target's standalone value based on a rigorous understanding of cash flows
• Ensure synergies work for our clients, not against them
• Chart a course early to unlock integration value quickly

To learn more about Scientia Advisors' M&A consulting capabilities, please contact us.