Main Subject - Business

You have made the decision to sell your healthcare information technology company. Maybe it was because your prospects are selecting the inferior product

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

but superior safety of your brand name competitor. It could be that one of the industry giants recently acquired one of your small but worthy competitor

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

Examples of combination products may in

and has removed the risk component of a buyer's decision. You may think that you have a limited window of opportunity for your technology and you should

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

sell it while it still enjoys a competitive advantage.

These are all good reasons to set your business sale process in motion. A critical element here i

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

time. Good technology not achieving meaningful market penetration is vulnerable to competition. Given this scenario, the more rapidly you can get your a

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

Combination pro

quisition opportunity in front of the viable buyers, the better your chance for more favorable sale terms and conditions.

All systems go, right? But wai

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

. We have a major proposal out to that 30 hospital chain and when we get that deal our sale price will sky rocket. So we are just going to wait for that

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

eal to close and then put our company up for sale.

Let me give you a gem here. We will call it the Moving Sales Pipeline Theorem. It states the sales pi

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

eline always moves to the right. This is based on over 20 years in technology sales and sales management experience and many years of selling companies w

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

th sales pipelines. The sales either take much longer than projected or do not materialize at all.

Given this, the time critical nature of your pending

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

usiness sale, and your desire to ring the bell from your 30 hospital chain deal, what do you do?

You engage a great M&A firm that specializes in Healthc

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

Following aspects would a

are Information Technology companies (I know of one if you are interested) to sell your business. Let them focus on selling your business and you focus o

dd to the challenges in developing combination products:

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

running your business and closing that big sale. Get several buyers interested and negotiate for your best deal. There will be a lot of give and take he

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

e. At the right moment, as a counter to one of the buyer's points, you ask for a 6-month window post acquisition to close that deal. You then ask, for ex

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

mple, for an earn out incentive of 50% of the contracted first year revenues of the hospital deal as “additional transaction value” payable 30 days after

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

the one year purchase anniversary date.

There are lots of moving parts here so let me elaborate. The first element is you do not delay your business sal

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

Professional from academic institutions, pharmaceutical industries, health care indust

process. We already established that it was time critical. Secondly, I very carefully chose the language “additional transaction value”. We want to mak

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

sure that this payment is not confused with ordinary income at double the long term capital gains tax rate. Third, you have a way better chance of closi

.

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

g the big hospital chain as a division of G. E. Healthcare, for example, than as XYZ Diagnostic Software, Inc. Finally, what a great way to kick off a re

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

Companies that provide selfless information through particip

ationship than a big collaborative sales win that makes the buyer look really smart. Your earn out check will be the most enjoyable payment they can make

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

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Your Operations Manual is a crucial tool in your Internal Management tool kit. It contains all the information you need to run your business day-by-day, face crises calmly, and lets you to back fill in a hurry.

Rotary die cutting is a process used to cut paper, metal, rubber, plastic, vinyl and other material in a predetermined shape and size. This method is used to cut shapes and designs that cannot be accomplished by a straight cut on a web press or a guillotine cutter.

Discussing with Erik Lie the experiences with Stock Options Backdating (SOBD) and the economic impact of his work. According to Erik, at least 15% of the stock options grants between 1996 to August, 2002,were backdated. Some were within 30 days of the grant date, others more egregious. The number of companies though he said that were going to come clean would be far less than 15%. Here is what we came up with.

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Main Subject - I Want to Sell my Healthcare Information Technology Company - Just After This Next Big Sale

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