Successful Sellers Seek to Maximize Acquirer Value

Successful Sellers Seek to Maximize Acquirer Value

Published in MedTech Strategist

Authors: Peter Meyer, PhD & Oded Ben-Joseph, PhD, MBA

Abstract:
Investors are motivated by the prospect of a timely return on their investment in the face of perceived risks. Sell-side CEOs attempt to create shareholder value through managing their business to a set of development milestones.

Strong leaders manage their teams to a set of carefully selected milestones that they believe will create value for their shareholders. However, it is the perceptions of the prospective acquirer that will have greater impact since it is their interest that will likely determine the timing and value of the future investor liquidity event. Buyer perception of business risk is a key determinant of overall transaction value, often incorporating complex analytical and emotional components that must be considered. Sell-side CEOs need to understand and judiciously mitigate buyer risk to maximize value for both parties. The savvy medtech leader will establish clear line-of-sight to their final liquidity event by defining their exit options, understanding what prospective acquirers truly want, building to those value inflecting milestones, and sharing their learnings with investors and acquirers alike.

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