By Daniel Brettler, Senior Vice President, Life Science & Technology Practice Leader, Conner Strong
Our country is facing one of the worst financial crises in more than a generation. Life science and technology companies face many of the same struggles seen throughout the country. Inability to raise capital, increased operating costs, increased global competition and increased governmental and industry regulations are just a few.
April 8, 2011: By Daniel Brettler, Senior Vice President, Conner Strong
Often overlooked in the early planning of a human clinical trial, insurance requirements specific to foreign jurisdictions may have a significant impact on a company’s clinical program and a material impact on its bottom line. The clinical impact may include delay in enrollment as well as a decision not to enroll at all in a particular country from a cost/benefit perspective. Historically, the costs to secure insurance meeting local requirements were insignificant and therefore typically not strategic to the clinical trials planning process. An evolution has taken place in recent years outside of the United States whereby a more uniform approach to protecting patients in human clinical trials has prevailed and continues to gain momentum in just about every country today. This movement towards uniform protection has created a complexity of risk management and insurance issues for both insurance company and life science company alike. Read more
August 2008: The NIC Insider (National Investment Center for Seniors Housing and Care Industry)
A few months ago, I received a call from a friend asking for contacts at mezzanine funds to help capitalize his new venture. As I thought about his question, I realized that it has become very hard to name a pure “mezz” fund. The predominance of hedge funds and private equity groups in the last several years has resulted in a convergence of capital. While there are, of course, funds that tend to make significant investments at the mezzanine level, the abundance of liquidity in the capital markets leading up to 2007 has caused so many funds diversify their strategies that, in many cases, they have become indistinguishable. For example, ask yourself — what is the difference between a private equity fund and a hedge fund? In many cases, the answer is now unclear. Read More
July 13, 2010: Originally published in “The Distressed Debt Report” (July 13, 2010)
In the mergers and acquisitions market, the heady deals of just three years ago have disappeared. But in their place a frothy new market has emerged, and, as always happens in down economies, it is one in which true fortunes can be made. Bull market fortunes can turn out to be made of mere paper, but bear market fortunes are forever.
Investor money has been flooding into “distress” funds since at least 2008, and over the last six months, funds have begun deploying money much more actively. For the acquirer willing to navigate the straits of distressed investing, the worst of times can present the best of opportunities. Read More
May/June 2008: By Bobby Guy: ADVANCE for Long-Term Care Management, (Vol. 11, No.3)
Successful acquisitions come in many shapes and sizes. For the senior living company looking to expand its portfolio, distress sales can provide a unique opportunity to purchase the diamond-in-the-rough at a very favorable price. What are the typical ways to acquire a distressed facility? Let’s take the example of a skilled nursing facility (the SNF) that is in default on $10 million of secured bank debt. A potential purchaser has several ways to try to acquire the facility for less than the full outstanding debt. The Consensual Sale (aka the “Short Sale”). In this method, the seller and the bank agree to the purchase price with the buyer. The purchase process is almost exactly like the typical asset sale of a facility that is performing well. The differences lie in the fact that that the bank must consent to the lower price and in the risks that can arise in distress sales. Read More
