Business Due Diligence for Debt, Equity Partnerships, Mergers & Acquisition

1. How will the industry shape up by 2023 and what it means for the Pharma & Nutraceutical companies in 2018?

Pharma industry in India is in a consolidative phase. BDD and M & As are expected to happen in more and more numbers in the near future. The Nutraceutical industry is at an infant stage in India - consolidation among existing players and entry to India by MNCs is expected to pick up pace.

While industry leaders will face challenges to stay in the competitive curve, the medium to smaller players will need to stay afloat and create their own unique value proposition that is sustainable. This essentially means there will be quite a lot of industry leaders who will look for inorganic growth via meaningful acquisitions or creating their niche by acquiring other interesting players.

Business Due Diligence will be at the core of this activity and will form the basis for successful or otherwise M&A or partnerships.

2. How well is Interlink positioned to conduct Business Due Diligence?

Interlink has the perfect blend of experience & expertise. Interlink has clocked more than 30,000 man hours and 11 successful cases to help small, medium and large organizations to effectively and efficiently tide over the challenges related to Business Due Diligence.

At Interlink, one can expect exceptional industry insights and domain knowledge.

Interlink is uniquely capable of delivering the BDD value for its clients encompassing

  1. Right and accurate Forecast
  2. Industry knowledge - cyclical nature - 8 yrs cycle; 5 yrs cycle
  3. Market insights
  4. Regulatory knowledge
  5. Patent knowledge
  6. Develop business plan
  7. Strategy & Execution - execution done through client teams
  8. Banks reinforce IMC creds

Most companies while carrying out the BDD process overlook key and very important insights that could make or break the outcome.

Oversight #1: Most companies do only Technical Evaluation and Validation (TEV) or Financial Due Diligence (FDD) and not Business Due Diligence (BDD).

Financial Due Diligence is just a part of Business Due Diligence and this oversight has costed many companies in the past dearly. Possible issues related to stakeholders, customers as well as R&D output, future forecasting on different therapies and business outlook after 4 to 5 years of time frame, looking at competitive strategy cannot be pointed out only with FDD, but can only be addressed with a methodic BDD.

BDD essentially covers all issues of an organization - its external and internal stakeholders, corporate strategy, R&D output, business performance and ability to forecast future trends. This comprehensive overview will not be available through FDD.

In a nutshell, BDD covers FDD and TEV.

  1. FDD is about Validation
  2. BDD is about Business Plan
  3. TEV is Technical Evalution and Validation

Oversight #2: Many a times, companies do not focus on external environment (regulatory framework) and internal environment (validity of patents, trademarks). These errors skew the forecast validity and may put the M&A in a jeopardy.

This means without gaining management strength in competition and new innovations taking place in different therapies will not be captured and in all likelihood the forecast may go wrong. It is a common knowledge in the M&A industry that if the forecast goes wrong, it can cost the company substantially a lot in terms of actual costs, opportunity costs, time, resources and most importantly - a skewed outcome.

Oversight #3: Most Companies focus only on physical assets of acquired entity and do not have a strategy in place to leverage its brand value, which could be a strategic asset if utilized well.

3. What is Interlink’s Value Proposition?

IMC's perfect blend of experience and expertise give it unique strengths in areas highly valued by clients:

  1. Deep market insights
  2. Up-to-date regulatory framework knowledge
  3. Industry leading forecasting accuracy (99%)

These strengths make IMC the perfect destination for effectively and efficiently overcoming the many complex challenges companies face in the present hyper-competitive environment.

The association with IMC frees companies from confusion of uncertainty and helps them focus on what they do best - deliver superior products to customers.

Interlink’s team of experienced and expert consultants having relevant and updated knowledge and skills with comprehension of environment. Our ability to work on future forecast and regularly tapping new molecules, R&D efforts and future competition for better forecast sets us apart from the rest. Interlink is one of the only few consultancies spending substantial R&D budget on a regular basis, therefore growing our knowledge cell exponentially every quarter from last 36 quarters.

Interlink can conduct a BDD within 12 to 15 weeks thereby shortening the time span owing to our knowledge cell and experience of consultants. The key is not 'What To Do' but 'How To Do' based on the industry knowledge and execution capabilities.

4. How do we create value in our engagement?

While most of the industry players engage on two node fee structure, Interlink offers its clients milestones based payments. We use tools and technology to bring in transparency in all our engagements to that the client expectations and our deliverable match completely.

We follow strong processes that in turns enhances the value of our clients experiences.

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Kalina, Santacruz (East),
Mumbai – 400 098
Maharashtra, India.
Tel: +91 96644 00206

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