Thursday, September 17, 2020
While early stage healthcare companies may seek resources from established healthcare companies, they often want to remain independent while they pursue their healthcare-related vision and build value.
Established healthcare companies expand and enhance existing product portfolios by acquiring early-stage technologies. They also want certainty that, if they help nurture an early-stage company, they will be able to acquire it once it is ready to exit without risk of being outbid by a competitor.
To balance these issues, companies often use a structured acquisition, in which the established healthcare company invests in the early-stage company, often obtains some degree of commercial rights and negotiates an option to acquire the company at a pre-agreed price. Join attorneys from Fredrikson & Byron, P.A. as they explain the rationale for, structure of, and pros and cons of a structured acquisition.