Overview of SJA Services

S. Jordan Associates (SJA) is a management consulting firm dedicated to assisting emerging growth companies accelerate therapeutic, medical device, and medtech development programs. Leveraging over 25 years of experience in pharma, biotech, investment banking, and FinTECH (founder of the premier online investment portal HealthiosXchange), SJA has established a strong track record of executing licensing agreements, private placements and “exits” (M&A) on behalf of clients.

SJA Capabilities BrochureView our capabilities brochure here.

Business Development (BD)

“…it’s no wonder that every big drug company wants to be “Partner of Choice” with smaller innovators. Nearly every pharma has hired consultants at some point to help it position its BD strategy more effectively.Bruce Booth, “Transformational Late Stage Drugs Delivered Through Deal Making,” Forbes, 3/21/14

“ …it’s a widely-held belief that a critical element of exceptional R&D organizations in the future will be creative BD engagement. In short, great BD and R&D are becoming synonymous with each other.” – Bruce Booth, “External Innovation: Force Multiplier For R&D,” Forbes, 6/26/2015

Strategic Advisory

“The past two years (2013-2014) have seen more IPOs (173) than the cumulative total of the prior decade…M&A has also been strong…biotech has seen 85 “big exits” over the past six years reaching an average upfront and total deal value of $366M and $507M in 2014 (30-50% higher than just five years ago).” – Bruce Booth, “Startups, Exits, and Ecosystem Flux: Bullish for Biotech” Forbes, 9/8/2014

“Nearly $26B in real or potentially liquid distributions have been generated over the past two years alone. This is 3-4x more than has been invested over that period of time by VCs into biotech; distributions vastly outstripping investments is certainly positive biomarker for the venture sector.” – Bruce Booth, “Venture Backed Biotech Today, Bruce Booth, Forbes 1/22/15

Private Placements

“….over $38 billion was deployed by venture capital into therapeutic biotech companies over the ten-year period (2005-2014) in nearly 3,000 financings.” – Bruce Booth “Disease-Specific Allocations: The Past Decade of Venture, IPO’s, and Deal-Making,” Forbes, 6/15/2015

“The creation of new startups is vital to the long-term health of the biotech.” – Bruce Booth “Venture-Backed Biotech Today, Reflections on Exits, Funding, and Startup Formation” Forbes, 1/22/15

Business Development Services

vinn-diagrams-bd

S. Jordan Associates (SJA) is a management consulting firm dedicated to assisting emerging growth companies accelerate therapeutic, medical device, and medtech development programs. Leveraging over 25 years of experience in pharma, biotech, investment banking, and FinTECH (founder of the premier online investment portal HealthiosXchange), SJA has established a strong track record of executing licensing agreements, private placements and “exits” (M&A) on behalf of clients.

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Strategic Advisory Services

 

vinn-diagrams-saBuy-side M&A Engagements

  1. Identify M&A Targets
  • Leverage Technology Platforms (“Big Data”) – SJA has access to over 700+ “Active” (~seeking to transact) emerging growth companies sourced via online portals, HealthiosXchange (U.S. and Europe) and Capbridge (Asia-Pacific)
  • Company Breadth– Identify companies by market sector (46), financing stage (seed-to-exit), and stage of development (Pre/Clinical – Marketed)
  • Notifications (“First Mover Advantage”)– “Follow” companies and receive catalysts updates in real-time meaningful to company evaluation/due diligence

 

Sell-side M&A Engagements

  1. Identify Strategic Buyers
  • “Rolodex”– SJA and investment banking partner, Healthios, have an extensive network of C-level suite executives at leading biopharma, medical device, medtech and healthcare services companies
  • Events– SJA connects companies and strategic buyers via online (webinars) and offline events (one-on-one’s, Healthios conferences ~JP Morgan)
  • Online Data Room – SJA provides valued tools for strategic buyers to efficiently conduct due diligence on companies of interest via online data rooms

 

Increase shareholder value by hiring SJA’s “virtual” investment banking team to identify and execute strategic acquisitions (M&A) leading to liquidity pathways (OTC.BB, IPO).

SJA Capabilities BrochureView our Strategic Advisory Services brochure.

“Virtual” Investment Banking Team – Acquisitions Fueling Revenue Growth/Stock Price

“Horizon’s breakthrough in 2014 wasn’t in the lab or a pharmacy; it was in finance.” – Mark Guarino
— “The Pain Pill That Saved Horizon Pharma,” Chicago Crains, 1/15

Investment Banking Team Leadership (Hired From JMP Securities)

  • 10 Person Business Development Organization
  • Analysis: Intellectual Property, Clinical, Commercial
  • Evaluating 40-50 Transactions Different Simultaneously
  • Emphasis on “Orphan” Drugs – More Durable Long-Term Asset
    • Less Competition
    • More Pricing Flexibility
  • Focused on acquiring drugs with <$200M in revenues and aggressively promoting to increase sales
  • Models: NPV, Accretion/Dilution, IRR, Payback

Virtual-Investment-Banking-Team

 

Assess on behalf of shareholders:

  • Risk/Return Profiles – Sharing downstream upside with a partner via milestones vs. “Going – Long” in public markets
  • Time to Liquidity – M&A typically offers realized returns today, whereas IPOs can take years to exit
  • Dilution –  Taking a company public implies selling a piece of the company to others; typical dilution can be 20-40% for an IPO.

IPO vs M&A: Cost-of-Capital Adjusted Equivalent Return Curves
IPO vs M&A: Cost-of-Capital Adjusted Equivalent Return Curves

Source: Bruce Booth, “Tradeoffs and Timing: IPO vs. M&A; A Decision-Making In Biotech,” Forbes, 4/2/15

 

Below: Assess on Behalf of Shareholders: IPO or M&A

The IPO (Initial Public Offerings) markets hit post-millennium highs in many key metrics, and the performance of the market has proven broad and resilient. The strong IPO markets continued to include a number of small-medium sized deals, and for the second year in a row, and the second time ever, the majority of venture-backed IPOs were in the biotechnology/pharmaceutical industry. (Source: Jonathan Norris, Kristina Peralta, “Trends in Healthcare Investments and Exits 2015,” Silicon Valley Bank)

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Below: Assess on Behalf of Shareholders: IPO or M&A

“The share of big exits vs. all exits contributed by either path has converged over time. In the last 7 years, roughly identical percentages exits in the two charts above, suggesting that the relative contributions of IPOs and M&As at big and small valuations are similar.” Bruce Booth, “Acquisitions As the Silent Partner in Biotech Liquidity: IPO Vs. M&A Exit Paths,” Forbes, 10/27/1014

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SJA Services – Project Management

We work collaboratively with CrowdFundConnect to finalize programming and design of your crowdfunding portal.

Programming Available

  • Advanced Members – Geo-positioning of Investors with Advisors (Broker/Dealers) and Issuers/Sponsors
  • Advanced Search – “Matching” Investors with Companies based on investor preferences in member profiles
  • Advanced Webinars – Like, Follow, Share Events, Automatically become members of SPX upon Registration
  • Notifications – Followers of Issuers/Company Pages Receive Automatic Updates
  • Rankings and Reviews – Crowdsourcing (~Scoring) resulting in benchmarks for Accredited investors to perform due diligence
  • Syndicates – “Online Venture Funds” enabling Accredited investors to diversify across a number or promising real estate opportunities
  • Reporting – Online reporting and tagging capabilities important for investor advisors (Broker Dealers/RIA) to assess/select investment opportunities on behalf of clients and evaluate investment performance.

Design

  • Additional Pages – Including Graphics: Business Descriptions, “Our Services”
  • Updated Website – Recommended once per year

 

SJA Services – Regulatory Compliance

When you purchase a crowdfunding portal, we can advise on compliance/regulatory to ensure your portal abides by all SEC/FINRA regulations including assessing accredited status, suitability, assumption of risk factors, and blue sky

  • 506 (b) and 506 (c) – General Solicitation
  • CRM Platform – Store steps completed by investors including executed documents (eSignature)
  • Documents: FAQ, Privacy, Terms of Service

Reserve” System – Verify Accredited Status (506 c), suitability, “Know Your Customer,” electronic signature, escrow, stock transfer and custodial. The “Reserve” makes it easy to invest directly in private equity:

  • eReview – Identify promising investment opportunities online
  • eDocuments – Review company documents online
  • eSignature – Sign Subscription/Term Sheets online

The “Reserve” makes it easy to run an online venture fund

  • eCompliance – H/X Creates LLC/SPV and Escrow Platform
  • eReporting – Shareholder Management
  • eRegulatory – JOBS Act Compliant, Registered Broker Dealer

SJA Marketing Services

Digital Marketing/Brand Acceleration: When you purchase a crowdfunding portal, we help you brand it and market it. Key value propositions include access to premium deal flow, easy-to-use funding platform, investor protections, and seamless compliance/regulatory framework

Branding/Marketing

Strategies

Affiliates – Target non-broker dealer referral sources including Attorneys, Consultants, and Industry Associations

Aggregators – Solicit broker dealers/RIAs and provide ability to track investor activity (weekly reporting), identify prospects (in geographic proximity – Advanced Members, broker dealer/RIA company page activity), and share in commissions via a Reserve system (success fees)

Limited Partners – Direct investments from institutional capital source (i.e., Endowments, Foundations)

Partnering – High-Net-Worth distribution channels including portals, premier news publications (i.e., Forbes)

Referrals Platforms – Create “Back-Links” from prominent websites. Incentives for Driving Referrals/Memberships: Links on 3rd party website and incentive programs for rewarding behavior including Carry (Non-Broker Dealers) and commissions/success fee-based models (Broker Dealers)

SEO – Search Engine Optimization (Google, Bing, Yahoo)

Self-Directed IRAs – PENSCO, Equity Trust, Millennium

Systems

Email Servers (Vertical Response/SendGrid) – Capture data in CRM “contact” record; monitor “open” and “click” rates and create workflows to send automated responses

Marketing/Sales Software (“Hubspot”) – Workflows based on member activities (opens, clicks, and member sign-ups for newsletters, road shows, webinars), blogging

Clicky – Monitor engagement on site, most active users etc.

Outbound Marketing

We build-out/integrate CRM (~SalesForce) and Inbound Marketing (~Hubspot)  capabilities.

  • Branded template design – Includes best practices for html email; retaining consistent appearance as best as possible with the most popular email clients; browser version links at top; compliance with can spam laws; alt text for images
  • Deals newsletter – Highlight 3rd party/proprietary deal flow
  • Benefits of Membership – Emails promoting the benefits of membership and value it brings to the marketplace
  • Informational Resources – Emails providing informational resources, white papers and other content of interest to mailing lists of potential members or investors or companies. Clicks are directed to HubSpot landing pages in exchange for providing contact information. These contacts are sent follow-up messages via inbound marketing campaigns
  • List acquisition and List rental

Inbound marketing

Leverage Inbound Marketing platform (Hubspot) for building investor lists in SPX’s member directory, workflows (automated emails to list participants), and social media integration (Linkedin Company Page, Linkedin Discussion Group, Twitter)

Social media marketing – Facebook/Twitter/LinkedIn company pages and accounts: Daily sharing of news items, white papers and other content of interest, building base of followers to share news socially, broaden company awareness, drive new members. Shared item direct people either to portal or to HubSpot landing pages in exchange for providing contact information.

Hubspot – Lead nurturing in HubSpot for people who provided contact information in exchange for an article or white paper but haven’t yet joined, through automated workflows

Advertising

Twitter Promoted posts
Google AdWords
Facebook Sponsored Posts
LinkedIn Ads
– Sponsored company updates (charged per click or per view, managed from a dashboard); Premium Display Advertising; Sponsored InMail – Email marketing sent by LinkedIn; PPC Ads – Target by industry, seniority, job function, geography
Banner Ads – Design and placement on appropriate websites of interest

For members/investors

Weekly Member Newsletters – Updates from new companies and trending stories

Events – Webinars, Road Shows, One-on-Ones

“Personalization”