SRS Acquiom has provided professional and financial services on over 180 life sciences M&A transactions since 2008, involving biotech/pharmaceutical products, medical devices, diagnostics, and life sciences tools and technologies. Very few of these agreements are available publicly, nor is information on post-closing outcomes. Based on our experience working on these transactions as post-closing shareholder representative, this study analyzes the following topics:
From over 130 life sciences deals that have earnouts, we present milestone achievement data and experience from 102 transactions that have been closed more than one year and have significant post-closing experience, including:
- 594 individual milestones
- Over $24B in potential defined earnout/milestone payments (plus uncapped payments, royalties, etc.)
- 326 individual milestones ($9.1B potential) originally expected to be hit or missed by August 2017
- Data broken out by industry, deal size, closing year, and product stage
We describe details of earnout provisions negotiated in several dozen recent deals closed between January 2015 and August 2017.