Preparing for an Exit

With M&A activity across the life sciences industry anticipated to increase as we move through 2024, now is the time for companies to assess their readiness for a potential change of control transaction – whether that transaction is a result of an unsolicited offer or a board-initiated sale process. Change of control transactions, particularly for publicly traded companies, move quickly, allowing little time for the target company’s (often already stretched) management team to get their arms around the numerous workstreams required to execute the deal.

These workstreams are both process-oriented and substantive, and include assembling a deal team, identifying and locating necessary diligence material and populating a data room, updating financial projections and briefing the board on valuation matters and their fiduciary duties, and addressing a myriad of employee, regulatory and intellectual property-related issues. A change of control transaction will always seem like a whirlwind, but some advanced planning can streamline and make more manageable the deal process.

With this in mind, we highlight below five key areas of focus to help stay a step ahead of a potential change of control transaction.