Situation:

A highly acquisitive global biotech company was in discussions with a smaller firm specializing in DNA cleanup technologies for research and clinical applications. With a goal of closing the acquisition within 90 days, our sponsor needed to understand the commercial implications of the target’s products including: market dynamics, customer feedback and competitive assessment.

Process:

After executing a three-way non-disclosure agreement (NDA) with our sponsor and the acquisition target, Kineticos began the data collection process. Our data collection involved interviews with industry key opinion leaders (KOLs), meetings with key staff at the target, customer surveys and desk research. Importantly, our PhD-level staff involved with this project was intimately familiar with the target’s products and technology. With these data and background, we were able to provide a report and recommendations detailing commercial and technical risks and opportunities associated with this potential acquisition.

Outcome:

Adding to their normal due diligence process, Kineticos’ unique commercial and technical insights enabled a more informed acquisition decision and valuation. As a result of our work, the sponsor and their Board of Directors determined that the target would not be a good fit with their strategic direction, which allowed them to focus resources on better-aligned M&A targets.