Caspari

If you are an entrepreneur with a technology of health care a small company based tries to take the next level, this article should be of particular interest to you. Your natural inclination may be to seek venture capital or private equity to finance your growth. According to Jim Caspari, founder and CEO of the Alliance of risk, the likelihood of obtaining venture funding remain below 3%. Given these difficulties, the process of six to nine months, the heavy, often punishing valuations, the cost of the process, this is not the best way for you to take. We have created a hybrid M & A model designed to provide capital resources for you business. It allows the contractor to make smart money and maintain control. It combines the experience of entrepreneurs in technology and several with that of a traditional investment banker Merger and Acquisition approach and create a model that both industry players and large landowners to Health care companies adopt.

The capital raising activities in the field of technology has led us to the conclusion that new product introductions have been more effective and profitable in the jurisdiction of the smaller, agile companies with low overhead and not giants technology. The most successful recent products have been the result of an effort by the entrepreneurial company with a boot early stage of its growth at a very cost conscious lean environment. Large firms, with benefits to all appearances they had a high failure rate in new product introductions and the losses of the art technology to capture the next heat has been tremendous. Make no mistake. There were hundreds of failures and start-ups. However, the fact that the little nervous start-ups have resulted in losses of about $ 1 - $ 5 million. The same result from an industry giant was often in the 100 million $ 250 million range.

For each Cephalon, Epic Systems and Idec Pharmaceuticals, there are literally hundreds of companies that either flame or never reach a critical mass beyond a loyal early adapter market. It seems that the mentality of these smaller business owners is, using the example of the popular TV show, Deal or No Deal, to hold the towel for $ 1 million. What about that logical contestant that objectively weighs the facts and quotes and cash of $ 280,000?

The dynamics of this market, has proposed a merger and acquisition model commonly used by the bell-weather technology, Cisco Systems, could also be applied to a wide range of companies in the health sector. Cisco Systems is a serial acquirer of companies. They make a lot of R & D and development of organic products. They recognize, however, they can not impossible to capture all the new developments in this rapidly changing field through internal development only.

Cisco targets investments in promising, small technology companies, and this approach has been a key element of their market dominance. They provide what we call smart money as the contractor of high technology. They buy a minority stake in the company from the beginning with a call option on acquiring the remainder at a later date an agreement on several evaluation. This structure is a brilliantly elegant method to dramatically improve the risk profile and performance of the introduction of new products. Here's why:

For the Contractor: (just substitute the name of your industry giant health care technology that is in your category for Cisco below)

1.The involvement Cisco - resources, market presence, brand, distribution capability is a self fulfilling prophecy to the success of your product.

2.For the same level of dilution that the contractor would get venture capital, angel investors or private equity group, the contractor gets the performance leverage of "art