Trusted Advisor for Tough Decisions

 

 

 

 

Licensing and Merger & Acquisition

Licensing

Structuring licensing deals and negotiations gets complicated when too many future uncertainties and options are present. However, not every uncertainty has the same impact on the overall deal value. Our approach allows for incorporation of risk and uncertainty. We help clients identify the key value drivers and understand the vital risk factors in order to focus negotiations on the important components of the deal term. Our approach involves:

  • Developing a valuation model for both the licensee and licensor that incorporates future risks and options
  • Finding key drivers of risk and value
  • Identifying the scenarios that maximize value for each side
  • Recommending negotiation strategies that maximize the client’s value while meeting their partner’s needs
Our methodology better prepares our clients for negotiation as compared to more traditional financial analyses. In addition, our approach brings together the various disciplines (R&D, Marketing, Finance, Manufacturing, etc.) as part of the assessment and establishes buy-in from everyone, thus allowing the licensing team to focus on the negotiation activities.

Merger Integration

Kromite has experience with a number of important mergers and acquisitions (M&As) in which it provided independent assessment of the target company’s pipeline. With years of experience in portfolio assessment and a large in-house database of key portfolio metrics, Kromite provides a detailed analysis in a timely manner to meet tight deadlines associated with M&As.

Kromite can also provide an assessment of the combined companies on the first day of approval. As an independent party, Kromite will sign confidentiality agreements with both parties prior to regulatory approvals and act as a “clean team” to gather product information from both parties. We assemble a full assessment of the combined company for review by senior management upon approval of the merger or acquisition. If the deal is not approved, Kromite destroys all confidential information, making sure neither company is contaminated.