Twin Cities Startup Week 2020
Thursday, September 17, 2020
Development Stage Strategic Investments with Acquisition Rights
While early stage healthcare companies may seek resources from established healthcare companies, they often want to remain independent while they pursue their healthcare-related vision and build value.
Established healthcare companies expand and enhance existing product portfolios by acquiring early-stage technologies. They also want certainty that, if they help nurture an early-stage company, they will be able to acquire it once it is ready to exit without risk of being outbid by a competitor.
To balance these issues, companies often use a structured acquisition, in which the established healthcare company invests in the early-stage company, often obtains some degree of commercial rights and negotiates an option to acquire the company at a pre-agreed price. Join attorneys from Fredrikson & Byron, P.A. as they explain the rationale for, structure of, and pros and cons of a structured acquisition.
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