We help Private Equities interested in investing in the CDMO market to make better deal decisions by assessing Target’s full potentiality.

CDMO industry is a unique one with different characteristics from other industries and especially from Contract Givers (Pharma Companies).

Fuliginous Management’s expertise in the specific industry, helps investors forming a clear picture of Target’s current business projection, growth opportunities, challenges and risks as well as what needs to be done and how so as to capture the future perspective and even more importantly how much time it realistically takes for the specific Target to reach its full potential.

We have seen unrealistic business plans with aggressive timelines for exit and we know how to distinguish successful exit plans from disappointing ones that entrap investors for more time and deliver less benefit (or even loss) from what was initially planned.

In the CDMO industry there is no elevator leading to success. One needs to identify and take the appropriate staircase that leads to the desired outcome.

The better Private Equity investors are prepared for their exit, the more successful their deal will be.

 

Here is how we can support your decision making when it comes to investing in the CDMO market:

 

  • Business Plan Creation (or Post Acquisition Business Plan validation)

Investors should have a clear picture of what results should be expected, how these results will be realized and by when so as to evaluate the business case and define their exit strategy.

We will support you in developing a challenging but realistic Business Plan according to the Target’s capabilities and potentiality that will be built on CDMO industry’s characteristics.

 

  • Identification of Cost reduction Opportunities

Even if many times neglected, cost is one of the primary factors for near future business sustainability, especially in technologies with increased competition. It is common that CDMOs see their profitability decreasing year after year. The main reason for this is poor cost management and limited or no actions taken addressing cost increases.

We can identify the cost level through benchmarking, determine the reasons for cost increases and suggest procedures and actions for efficient cost increase management. This will illustrate where room of improvement lies, what and how much benefit could be targeted and what expectations investors should have before proceeding with the deal.

 

  • Identification of Growth opportunities

CDMO business is growing and expected to continue growing with a CAGR that is double than the one that Pharma business is growing.

We can support you by identifying what growth can be achieved and by when, where the growth would come from and what needs to be done to capture the opportunities. Investing in new technologies that make sense for the specific Target services and capabilities, expand to new geographies or simply reach full potential with existing resources.

 

  • Business Development Improvement Opportunities

In order to achieve growth, CDMOs should have the appropriate business development mentality.

We can evaluate if Bus Dev works according to best practices or there is room for improvement, that will eventually support growth. Review current processes and way of working, understand how customer focused the Bus Dev team and the supporting organization is, RFQ management and lead identification processes will be examined and compared to market best practices and improvement opportunities will be identified. If everything within Business Development works fine and improvement opportunities are limited, potential investors will know.