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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