Licensing

Structuring licensing deals and negotiations get 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

If you are considering merging or acquiring another company, Kromite can help you assess the target company’s products.  With years of experience in portfolio assessment, Kromite can provide a detailed analysis while incorporating both risk and uncertainty.

If you are in the process of merging or acquiring another company, Kromite can provide an assessment of the combined companies on the first day of approval.  As an independent party, Kromite can sign confidentiality agreements with both parties prior to governmental approvals.  Kromite can act as a “clean team” and gather product information from both parties and 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 will destroy all confidential information making sure neither company is contaminated.

Finally, if you have an alliance with another company, consider Kromite as an independent party to assess investment opportunities for the alliance.  As an independent party, Kromite can help the alliance assess and prioritize projects and activities without any bias.