Situation

A pharmaceutical drug research firm providing unique and proprietary capabilities to improve the efficacy of new drugs being developed by firms in the U.S. and overseas required new sources of capital. The client needed the capital to vertically expand its manufacturing capabilities and provide a liquidity event for the company’s founders and other employees nearing retirement.

Solution

A NextLevel partner joined the client as interim CFO, bolstering the accounting team following the resignation of its CFO. The partner worked closely with executive leadership and investment bankers to evaluate bank debt refinancing alternatives, as well as opportunities to sell a minority stake to private equity sponsors. The partner also worked closely with the client’s general counsel to prepare an electronic data room, respond to potential investors’ questions, and ensure interim financial statements were fairly presented.

Results

As due diligence with prospective investors unfolded, the unique value of the client’s intellectual property portfolio to strategic buyers became apparent.

  • The client’s Board of Directors agreed to sell 100% of the company to a $2 billion pharmaceutical company.
  • The sale provided the growth capital and liquidity for the company’s founders.
  • The buyer committed to retain all science and engineering jobs, and the company’s unique culture, at its existing location.

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