Biotech firms can be valued as strategic acquisitions, not for their revenue
Evidence
We’re generally not looking for an IPO [initial public offering] exit, so our focus is to find companies which are developing a disruptive technology where the disruption is sufficiently apparent that it will trigger a strategic acquisition by an incumbent in the market … So the acquirer is not buying your revenue, a multiple of that, they are strategically acquiring you because they don’t want their competitors to acquire you, because that will threaten their market share, or they want to acquire you because they can threaten their competitor’s market share—so it’s a strategic acquisition. — Kean Birch, Rethinking Value in the Bio-economy, 76
Categorization
- XREF: Connects to research on exit strategies in VC financing and the distinction between strategic (trade) sales and financial (IPO) exits in assetization debates. — connects to: Life sciences firms may never produce products, so valuation is prospective rather than embodied — Kean Birch, Rethinking Value in the Bio-economy:…, 38; In the bioeconomy, informational signaling about assets, not product sales, constitutes firm value. — Kean Birch, Rethinking Value in the Bio-economy:…, 106; Analyzing bio-economy value requires focusing on assets rather than commodities — Kean Birch, Rethinking Value in the Bio-economy:…, 68 (+2 more)
Related
- Value in the bio-economy is managed through asset governance, not product sales. (similarity 0.85)
- Life sciences firms may never produce products, so valuation is prospective rather than embodied (similarity 0.84)
- In the bioeconomy, informational signaling about assets, not product sales, constitutes firm value. (similarity 0.81)
- Understanding value requires studying the assets underpinning firm valuation, not commodity production. (similarity 0.80)
- Analyzing bio-economy value requires focusing on assets rather than commodities (similarity 0.79)
- Bio-economy valuation practices are not peculiar to that sector. (similarity 0.79)
- Value in the bio-economy is better theorized through assetization than commodification. (similarity 0.79)
Broader Connections
- Value in the bio-economy is managed through asset governance, not product sales.
#corroborates(0.92) — Kean Birch, Rethinking Value in the Bio-economy, 88 - In the bioeconomy, informational signaling about assets, not product sales, constitutes firm value.
#corroborates(0.90) — Kean Birch, Rethinking Value in the Bio-economy, 106 - Value in the bio-economy is produced through valuation practices, not intrinsic to biological matter.
#corroborates(0.82) — Kean Birch, Rethinking Value in the Bio-economy, 1 - Analyzing bio-economy value requires focusing on assets rather than commodities
#expands(0.80) — Kean Birch, Rethinking Value in the Bio-economy, 68