This regional provider of blood and tissue components has always focused on saving lives through research, innovation, and excellence in the blood products it provides. However, realizing that its tissue services business needed improvements to meet new and rigorous standards of second degree tissue sterilization, this client had some decisions to make. Should it infuse capital to meet these standards or divest this portion of the business and continue to focus on its core blood product lines?
Understanding where the value lies
To help this company command a premium, Point B thoroughly assessed and understood what areas could attract and provide the most value to the purchaser. Having worked with other companies in similar situations, we were able to recommend a pragmatic approach and a negotiating position to justify a market premium for the sale of the business.
- Built a five-year discounted cash flow valuation to quantify the value of the business.
- Developed the deal structure and earn-out methodology in support of the performance-based payment schedule.
- Led the negotiation strategy through agreement execution with the purchaser.
- Performed critical tasks for all due diligence and pre-close activities.
Strengthening the seller’s position
The client was able to strengthen its negotiation position and command a price for the business worthy of the time, money, and talent invested over the years.
With our help, the client:
- Executed efficient and successful transaction for the sale of client business to the purchaser.
- Achieved a significant return that exceeded the original valuation of the business.