Divestments

Overview

Ferghana’s global focus on all aspects of the Life Sciences industry (drugs, devices, and diagnostics) makes the firm unusually well qualified to handle Divestment assignments (sales) on behalf of our Clients, whether these sale mandates relate to a specific molecule/asset, a major division, a technology, or the outright sale of an entire company. By working within the economic and legal context applicable to each market, Ferghana effectively represents its Client’s interests by providing the best choice of local or international company to acquire the business to be divested.

Ferghana advises its Clients as to the best selling strategy to be followed (such as full auction, controlled invitational auction, or bilateral sale negotiations). In most instances, the preferred sale route for the Client to ensure the best return is the auction sale. Ferghana has particular expertise in auction sales and has created a rigorous and tightly controlled divestment process.

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Divestment Process

Information Memorandum

Information Memorandum

Working closely with the senior management of its vendor Client, the Ferghana divestment team prepares an Information Memorandum  which accurately and attractively describes the operating, regulatory, commercial, technological, and financial characteristics of the activity to be sold.

Offeree List

Offeree List

Ferghana prepares an offeree list, creating a complete universe of all possible (local, regional and multinational) acquirors, which list is then screened to identify the most qualified and most probable purchasers of the activity. The list will include trade buyers as well as appropriately qualified financial buyers.

Survey Buyer Interest

Survey Buyer Interest

Ferghana then discreetly inquires from the selected buyers its interest in the so-far anonymous transaction before revealing the identity of the Client and the core details of the deal. Ferghana is especially artful in making this initial approach, in establishing preliminary buying interest, in providing the non-Confidential Information Memorandum, and in coordinating further contacts between the seller and the qualified purchasers. Ferghana requires that potential purchasers execute a Confidentiality Agreement before receiving a Confidential Information Memorandum or accessing management.

Manage the Due Diligence Process

Manage the Due Diligence Process

As the sale process unfolds, Ferghana manages the due diligence process, from coaching the management presentations to the probable purchasers, to the creation of a data room, to attendance at on-site visits by the incoming due diligence investigation team of a few favored purchasers.

Rounds of Bidding

Rounds of Bidding

Throughout the sale process, Ferghana advises the Client on winnowing out the least committed and least compatible buyers, both through interactions and through one, or two, rounds of bidding (in which each potential purchaser will be required to indicate cash value and conditions, the key terms of a deal, along with time needed to complete).

Participate in Negotiations

Participate in Negotiations

Once the field has been narrowed to one, or (in unusual circumstances) two, preferred purchasers, Ferghana leads negotiations, alongside the Client and its legal counsel (in order to ensure that the formal documentation embodies the agreed deal points).

Select Transactions

Divestment
Transaction 42
Divestment
Transaction 63
Divestment
Transaction 69b
Divestment
Signature Diagnostics
Divestment
Pulsion
Divestment
Ipsogen