Acquisition in German life science company
Having led the analysis and deal negotiation for Apis' acquisition of Clickmer Systems Gmbh, it is great to reflect on the effectiveness of the techniques discussed in my training course.
Those techniques led to a rapid focus on the key issues during diligence. There is much to think about when making an acquisition, so it is useful to have a auditable record of how you went about focussing your efforts and upon what key issues the terms of the deal were based upon.
By a focus on the key issues, due diligence was informed. This helped workflow efficiency because the biggest risk factors were dealt with first. Sunk deal costs are a major factor in later regretting having done the deal, so minimising results in better outcomes.
Also valuation for technology companies is typically driven by one or two factors that are best answered by the question "what is going on here" rather than reliance on a spreadsheet and multiples. The hypothesis techniques shines a light on this question and in turns informs valuation and term sheet negotiation.
All this is done with an audit trail of the logical process and steps taken