The Art of The Multi-Track Deal
Keys to Maximizing the Value of Your Company
Pursuing multiple deal options in parallel, known as a multi-track process, can create competitive tension that will enable a company to obtain the most value out of the deal, whether the result of that process is an asset sale, global or regional partnership, a new round of financing, or a merger and acquisition.
This multi-track deal pursuit leads to impactful market feedback that can inform all future financing, partnerships, and/or acquisition strategies alike. Companies that neglect to go through the process of understanding what data should be presented to potential strategic partners — and when to present such data — will find it challenging to raise money from investors because those same investors will be calling those strategic partners asking “if we build it, will you come?” Similarly, gaining an understanding of potential partners’ enthusiasm for an asset will enable companies to more effectively value their own asset and themselves as a company.
Multi-track deals can maximize the value of the company or an asset, filling in gaps in management’s own understanding of the market or the needs of buyers. Conversely, it can help ensure deal execution if one or more “Plan A” options fail to materialize. At the very least, starting a dialogue with potential partners helps to build bridges within that organization’s scientific and business development groups, augmenting the relationships a company or its investors may already have with that buyer or potential partner, and paying dividends in the future.
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