With 9 in 10 M&A life sciences deals including an earnout, staying on top of deal terms and trends is vitally important to deal parties in the industry. Drawing on highlights from the 2023 SRS Acquiom Life Sciences M&A Study, plus new data for 2024, this info sheet explores:
- A due diligence spotlight
Defining diligence standards has never been more important in Bio/Pharma deals, especially in light of recent Delaware case law.1 Find out the latest on the Commercially Reasonable Efforts (CRE) standard and whether your deal is on trend. - The earnouts "sweet spot”
Only 7% of the earnout dollars for Bio/Pharma were paid out, according to the 2023 SRS Acquiom Life Sciences M&A Study. Learn more about early-stage vs. late-stage acquisitions and the difference that up-front payments can make in earnout achievement.
1: See SRS v. Alexion Pharmaceuticals (Del. Ch., September 2024) and Fortis v. Johnson & Johnson (Del. Ch., September 2024).
Kip is a senior director leading the SRS Acquiom thought leadership practice, the mission of which is to share resourceful content built from SRS Acquiom expertise and proprietary data. In addition to facilitating scores of interactive presentations at M&A conferences and law firms, Kip authors a plethora of articles and data studies regularly utilized by the market.
Previously, Kip was a part of the SRS Acquiom Transactional Group, where he collaborated with clients and counsel to negotiate M&A documents including purchase, escrow, payments, and other transactional agreements. Before joining SRS Acquiom, he was an attorney with a Denver-based boutique business law firm working on middle-market M&A deals.
Kip holds J.D. and M.S. (Econometrics) degrees and is a member of the Colorado bar.