Introduction
Overview: Ronald Rutten, CEO of Nordic-Mubio, had a vision to create a consortium of small companies within the life science sector, with the ultimate goal of selling them as a single entity. Despite having a strong business strategy, Ronald lacked expertise in the antibody industry and sought assistance to bring his plan to fruition. This is where Pivotal Scientific Ltd (PSL) stepped in to guide him through the process. From 2011 until the eventual sale of Nordic-MUbio to LSBio in 2019, PSL played a crucial role in managing acquisitions, sales, and the commercial integration of multiple companies.
Ronald’s Vision: Ronald’s plan was clear: acquire several smaller life science companies across the globe, consolidate them, and eventually sell the combined business as a larger entity. His goal was to use a “bolt-on” strategy, adding small businesses to his existing company, Nordic Immunological Laboratories, to expand its product offerings and market presence. After hearing about PSL’s expertise in the life sciences sector, Ronald approached PSL to help guide him through the M&A (mergers and acquisitions) process.
PSL’s Role: From the beginning, PSL established a strong working partnership with Ronald, agreeing to work on a retainer basis. Their task was comprehensive: PSL would manage the Commercialisation & M&A process. This process included identifying potential target companies, implementing marketing strategies, handling B2B relationships, and overseeing commercial integration post-acquisition.
Key Services Provided by PSL:
Target Identification: PSL first collaborated with Ronald to outline the types of companies that would fit into his “bolt-on” strategy. PSL created a detailed scope of suitable companies, from which PSL produced a long list of potential life science acquisition targets. After reviewing the list with Ronald, a short list of companies was created, and PSL began reaching out to them. PSL adopted an open, transparent approach when contacting the target companies, clearly outlining Ronald’s plans. This allowed for a straightforward discussion with potential sellers, establishing trust from the outset.
Negotiations and Due Diligence: Once a target company expressed interest, PSL facilitated the Letter of Intent (LOI) and supported Ronald in negotiating the purchase price. PSL’s involvement didn’t stop there—they took charge of the commercial due diligence, focusing on key areas such as:
- Product portfolio evaluation
- Sales history and future forecasting
- Marketing efforts
- Competitive landscape analysis
- Pricing strategies
- Customer base
- Site visit
Ronald managed the financial, legal, and human resources aspects, including the operational lab aspects of the production of products, in the due diligence process, while PSL focused on the commercial and operational components. This included conducting supplier reviews, customer analyses, and evaluating the company’s market potential.
Commercial Integration: Once an acquisition was completed, PSL was responsible for managing the commercial integration of the newly acquired company into Nordic-MUbio. This involved:
- Website integration
- CRM and marketing system updates
- Managing customer communications
- Streamlining sales and marketing activities
- Communication with company partners (e.g. OEM or distributor partners)
To ensure a seamless transition, PSL staff adopted Nordic-MUbio email addresses and titles, helping establish clear communication lines with customers, partners, and future acquisition targets.
A Serial Life Science Acquisition Strategy:
PSL repeated this process with multiple companies as Ronald expanded his portfolio. By managing both the acquisition process and the commercial integration of each company, PSL allowed Ronald to focus on his broader business strategy without being bogged down by operational details.
When Ronald had grown Nordic-MUbio into a sizable entity, he decided it was time to sell the collection of companies. This time PSL compiled a long list and short list of potential buyers, eventually leading to negotiations with LSBio, a company owned by Thompson Street Capital Partners.
PSL was instrumental in navigating the sale process, from drafting the LOI to assisting with due diligence. As before, PSL managed the commercial side of the due diligence, answering product-related questions and ensuring the deal proceeded smoothly. The acquisition by LSBio marked a successful exit for Ronald, bringing his vision to fruition.
Lessons for Other Life Science Companies:
For life science companies considering acquisitions, the case of Ronald Rutten and Nordic-MUbio offers several key insights:
Expert Guidance: Partnering with experts like PSL, who understand both the technical and commercial sides of the industry, is crucial for a smooth M&A process.
Transparency Matters: Being open about acquisition intentions with potential targets fosters trust and leads to more successful negotiations.
Commercial Focus: Companies need to ensure that not only financial and legal aspects are covered during due diligence, but also commercial factors such as product fit, market competition, and customer base.
Seamless Integration: Effective commercial integration post-acquisition is key to realizing the full value of the purchase. This includes merging marketing systems, aligning sales teams, and ensuring consistent communication with customers and partners.
Conclusion
Pivotal Scientific helped Ronald Rutten execute his vision of building and selling a consortium of life science companies through their deep expertise and hands-on approach. Their role in identifying targets, managing the acquisition process, and integrating companies into Nordic-MUbio allowed Ronald to focus on his end goal: a successful exit.
