This infographic reveals a timeline of M&A milestone payments on deals where SRS Acquiom has served as post-closing shareholder representative for sellers on 227 M&A transactions since 2008 involving private-target Life Sciences companies.
- Total Life Sciences Deals 227
- Up-Front Payments $39.6B
- Potential Earnout $37.5B
- Earnout Deals 163
Earnout Achievement, by Deal Closing Year*
Achievement rates for early milestones tend to be higher than for later milestones. 26% of earnout potential has been paid on deals that closed 8+ years ago, while 51% of amounts already due in deals from 2017-2019 have been paid.
- All Sectors: ≤2011 26%; 2012-2014 34%; 2015-2016 32%; 2017-2019 51%
- Bio/Pharma: ≤2011 26%; 2012-2014 37%; 2015-2016 36%; 2017-2019 49%
- Devices and Dx Research: ≤2011 26%; 2012-2014 29%; 2015-2016 20%; 2017-2019 52%
Percent number shown is for $ paid out as a percentage of potential earnout $ due by mid-2019.
Timeline of Paid Milestones, from Closing Date
70% of paid milestones are paid within three years, and 93% of paid milestones are paid within five years of closing.
This overall trend has been consistent across all three sectors.
- All Sectors: 155 Total Paid Milestone events, $4.1B
- Bio/Pharma: 71 Total Paid Milestone events, $2.9B
- Devices and Dx Research: 84 Total Paid Milestone events, $1.2B