We maximize value for all shareholders and business divisions in your organization by identifying investment opportunities and evaluating the potential for synergies.
We assist you in developing your strategy by identifying the areas of activity and target markets focus on. We define growth drivers and viable competitive advantages through feasibility assessments and effective implementation planning.
Mergers & Acquisitions strategy is an effective growth driver for any organization wishing to create or leverage a competitive advantage or enter new markets and territories.
Tefen helps its clients identify and develop the most feasible strategy to fulfill shareholders' vision and targets.
M&A success demands research and preparation, and careful execution. Tefen works with clients throughout this process, while using well-proven methods and tools, to ensure optimal integration.
While examining an acquisition target, we conduct a structured due-diligence of the potential purchase, business, and the organizational and operational compatibility; and of the alignment of the potential target to the buyer's resources, capabilities and strategic vision.
M&A success requires a wide examination of the entire process, from vast strategic aspects to drilled-down implementation:
1. First, Tefen maps the strategic activity in the specific field, peripheral markets and the characteristics of the potential acquisition targets. Potential synergies and critical attributes are also investigated and quantified.
2. The most attractive opportunity is based on the highest value for the organization (short & long term) and maximal ease of implementation to ensure value capture.
3. Tefen then performs a thorough due-diligence of the merged organization, covering all operational and organizational aspects and analyzing the benefits and risks that might follow the merge. In this part, we normally quantify value and pricing scenarios.
Following the acquisition decision, Tefen investigates the acquired organization's vision and business plan and its compatibility to the buyer's strategy. Tefen also issues alignment procedures.
We support our clients with execution, from initial alignment to the establishment of a steady state, correlated with defined objectives and work plans.
A shifting landscape forces Life Sciences and Pharmaceutical R&D organizations to embrace change. Tefen segments this change into five main external points:
Market: Existing major markets have stagnated and new/emerging markets are becoming more attractive
Competition: Generics are becoming increasingly aggressive and traditional Intellectual Property (IP) has been threatened. The much publicized patent cliff is growing as pressures for reduced costs and innovation increase.
Saturation: A transition is occurring as the primary care blockbusters turn away from major diseases to niche diseases, focusing on innovative biologics.
Technical: Product complexity is increasing as the industry moves towards targeted treatment solutions; but the increased investment in solutions has not been translated into an increased approval rate.
Regulatory: The standard of patient care has risen dramatically and so has the standard of proof; regulation agencies are becoming increasingly demanding in their auditing processes, making clinical trials more complex and expensive.
Tefen’s methodology relies on five important steps that start with building a coherent product strategy in order to fulfill unmet medical needs. The product strategy includes ensuring a steady, balanced revenue stream for the company and a technology roadmap that exploits current and emerging technologies to deliver products that the market needs.
The second step is outlining the optimal IP licensing strategy. It can be too expensive to conduct all development in-house, yet risky to allow external partners to own intellectual property. A clear strategy and well managed partnerships are critical.
The third step is the implementation of excellent development processes. Complexity in organizations, processes and legislation can extend time-to-market, jeopardize launch dates and exceed budgets.
Since as much as 80% of a product’s cost is set at the development stage and there is little ability to reduce this cost during commercial life, Tefen's fourth step is to integrate a "Design-for-X" philosophy. This means making specifications meet the needs of all internal customers, not just the end customers. It also encourages a culture of innovation to drive towards practicality and manufacturability.
Finally, managing the R&D project portfolio is important to ensure investment decisions are made systematically and are strategically aligned with existing development initiatives.
Overall, Tefen’s approach involves developing structured processes and Key Performance Indicators that facilitate effective portfolio and pipeline evaluation decisions, and establish accurate and comparable data-based information to ensure fact-based decision-making and resource allocation.