David Chaikof and Peter McCague outline key planning strategies for M&A in BioTuesday.com

Key Planning Strategies for Healthcare M&A Transaction

April 12, 2011

The past year has seen a resurgence in healthcare and technology M&A activity, both in North America and internationally, write David Chaikof and Peter McCague. A combination of low interest rates, readily available private equity financing and a growing belief in the strengthening of the North American economy has encouraged more midsize companies to seek growth through acquisition.

Further, as blockbuster drugs came off patent in 2009 and 2010, big pharmas fearing loss of revenue share continued to look to small and midsized life sciences and biotech companies for acquisition transactions. The result has been a steady increase in M&A deal volumes in the healthcare and life sciences sector.

Whether considering an acquisition to fuel growth or defending against an unsolicited takeover attempt, companies in the healthcare sector must be apprised of the complexities of M&A transactions. Key considerations are as follows:

1.  Identify the Appropriate Target
2.  Conduct Tailored Due Diligence
3.  Antitrust and Foreign Investment Considerations
4.  Deal Protection Mechanisms
5.  Defensive Tactics

Read the full article here.


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