Digg It - Business

If you are considering purchasing a business you should take the time to define your “must have” and, to a lesser extent, “ideal” business purchase criteria before you take your first step to find a company to buy.

It is important to define what your absolute business purchase criteria are a

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

nd what attributes of a company are just “nice to have”. Having these clearly defined and written will add a significant amount of efficiency to the entire business sourcing, definition, qualification and eventual purchase process. If you choose to utilize a business acquisition intermediary

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

to assist you in finding your ideal acquisition candidate, having this fundamental information clearly defined will help them best serve your business purchase needs.

Business purchase criteria can be divided into two fundamental categories, “practical” and “subjective”. Practical business p

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

urchase criteria is best defined as purchase benchmarks that make sense to use no matter what business purchase transaction is made, these terms simply make practical sense. Subjective purchase criteria, like the term suggests, are business attribute measures and conditions that correlate wit

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

your own personal purchase criteria or preferences, business experiences, knowledge and risk/ reward tolerance levels.

Practical Business Purchase Criteria:

The potential list of business purchase criteria, terms and conditions can be long. The best way to start the process of defining you

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

r specific practical purchase criteria is to first list the general practical criteria categories when seeking a business to buy. These are categorically listed below, you may want to consider customizing them for your own use:

Business type:
Service provider, manufacturer, distributor,

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

holesaler, retailer, software or E commerce based, or any combination thereof

Type of products or Services:
Proprietary or generic, industrial or consumer, technical or non-technical, patent protected or not, software based or not, regional or international demand

Business Existence Ph

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

ase:
Start-up, early stage, emerging growth, established or turnaround

Primary Market Focus:
Refer to the established Standard Industrial Classification (S.I.C.) code list: Construction, Mining, Transportation, communications, to name a few

Sales revenue and associated profit level

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

:
Common criteria to define company “size” thresholds, minimum levels mostly, results defined for stipulated time frames, audited or not

Business headquarter location:
Domestic only or international, regional or local

Type of business purchase transaction sought:
Complete buyou

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

t, recapitalization, bankruptcy revival, investment only

Subjective Business Purchase Criteria

Defining subjective business purchase criteria, terms and conditions is often an ongoing process, difficult to do in one sitting because it truly is a “learn and accumulate as you go” process. Lis

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

ed below is a good start at defining some of the most significant subjective criteria categories you might also want to consider and edit for your own requirements:

* Voting control
* Availability of future business buyers
* Owner reasons for sale
* Seller willingness to stay p

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

st sale
* 5 year growth potential
* Quality of existing management
* Brand names
* % of total sales from international
* Customer purchase loyalty
* Industry leadership position
* Real Estate issues
* Customer revenue concentration/ mix
* Pending li

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

tigation
* Existing binding contracts
* Company affiliations
* Level of technology protection
* Internet presence
* Image of the industry
* Cleanliness issues
* Success dependency on # of employees
* Industry macro trends
* Labor force organization <

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

r>* Non-compete terms
* Quality of board of directors
* $ level of assets
* Level of owner financing
* Earn out financing terms
* New products in the pipeline
* Seller integrity
* Seller personality
* Relocation requirements
* Level and terms of debt

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

* Purchase price calculation
* Ease of due diligence required
* Financials audited or not
* Location(s) of satellite operations
* Status of computer systems
* Condition of manufacturing equipment
* Level of competition
* Personal interest in their markets

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

* “Fit” with existing business
* Liability of the products/ services
* Length Product life cycles
* Breadth and depth of offerings
* Hazardous waste issues
* Pending legislation
* Corporate culture issues
* Level of government intervention
* Seasonali

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ty of revenues
* Availability of critical raw materials
* Representation/ Distribution
* Acquisition candidates in the space
* Cash flow
* Capital required to grow the business
* Customer support required
* Financial status of key customers
* Current le

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

el of market share
* Customer churn rates

When you think about it and actually get involved in pursuing a company purchase, you quickly realize that your success rate of finding your “ideal” company to purchase is a direct result of your ability to effectively locate viable potential acq

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

uisition candidates and cost effectively DIS-qualify them via your own, “well honed” business purchase criteria checklist.

Take the time and put in the effort required to finalize your business purchase criteria early on in your business purchase methodology. The old adage, “If you don’t kno

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

where you are going, you are certain not to get there” applies in this process. Finding a company to purchase that meets your EXACT purchase criteria rarely happens, but as you learned here, it all depends on the depth and breadth of your practical and subjective business purchase criteria

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.diggit.org.ua/article/29233/diggit-A-Simple-Way-to-Evaluate-Any-Target-Market.html">A Simple Way to Evaluate Any Target Market</a>

BB link (for phorums):
[url=http://www.diggit.org.ua/article/29233/diggit-A-Simple-Way-to-Evaluate-Any-Target-Market.html]A Simple Way to Evaluate Any Target Market[/url]

A value-added event enhances your client relationships. There are two distinct styles: the mass value-added event and the focused value-added event. Some professionals present only one type; others offer a combination of both. At minimum you should host one focused value-added event a year.

Morris has been a Texas Ranger for 15 years. This officer would go on patrols and respond when an emergency occurred. Having lived in Houston while growing up, it was easy to do the job. One night, Morris met a friend who left the force 4 years ago. This person now had a private investigator service in the city. Business was good and it was time for it to expand.

Tags

Links

Digg It - A Simple Way to Evaluate Any Target Market

Related Articles: