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SUMMARY [TL:DR]
- A promising pharmaceutical company is acquired by a major drug company following product success.
- Acquiring company plans to shut down the in-house testing lab division of the business and donate equipment.
- The Testing division’s Lab Director sees an opportunity to build a separate company and build an outsourced testing company for pharmaceutical companies.
- AVL partners with the Director to develop a business strategy, secure financing, set pricing, establish the business, and execute the asset purchase – all in four months.
- Results: Investors were paid back earlier than expected, and the company now operates globally with over 30 employees and continues to thrive.
CHALLENGE
A full-service drug manufacturer and testing supplier was acquired by a major drug company after one of the drugs became a stunning success. After the acquisition, the purchasing company decided not to continue in-house laboratory testing and was prepared to write-off or donate the laboratory assets. Seeing an opportunity, the Laboratory Director expressed an interest in running the laboratory as a separate, outsourced business. Because of the acquiring company’s plans to move and donate the lab, the Director had to move swiftly to secure the assets or risk losing all of his work and the years it took to build it.
AVL SOLUTION
After the Director contacted AVL, the team took action immediately. AVL first helped the Director secure financing and proposed an offer to the acquiring company for the laboratory. After acceptance and securing the laboratory assets is when the real work began. While the Director had run the laboratory for years, he did not have experience building or running a company. AVL rolled up their sleeves and worked alongside the Director to help his new company set pricing and craft a business model that would be attractive to investors and potential customers. A complex model to build, AVL worked alongside the Director during laboratory hours, calculating everything from surgical needs to cleaning costs to help establish pricing for the new company.
Working as a close business partner, AVL helped build the company from the ground up. Within four months, the team helped the director purchase assets, secure a lease, raise investor capital, hire employees, and set up payroll and benefits. Going even further, AVL was able to help the new laboratory build a website, design a logo, and launch the company to market, going above and beyond the finances with a sustainable and total vision for the company.
RESULTS
After working with AVL, the company paid investors back and continued growth upward. Within a short time, they built relationships and accounts with global pharmaceutical drug companies worldwide, with some of the most renowned scientists in the field. The laboratory doubled in size and currently employs over 30 professionals.