The Biotech Quality Group is a specialist life sciences manufacturing and production process improvement and regulatory compliance specialist to Europe’s leading pharmaceutical and biotech organizations. Having grown rapidly in both size and market share since its inception in 2011, BQG’s founders were seeking to realize value for their efforts to date whilst finding a partner to help fulfil their growth ambitions to become the go-to specialist for production performance improvement and regulatory compliance in life sciences. The founders engaged Equiteq to advise them on the process due to Equiteq’s unique consulting sector knowledge and experience. The transaction process resulted in a successful sale of a majority stake to Assystem, a French-listed global industrial engineering consulting firm.
The client's situation
The Biotech Quality Group is an advisory firm operating from Belgium, Switzerland and France, specializing in improving the performance of biopharmaceutical and medical device companies. By anticipating the specific challenges of the evolution of stricter regulations, it enables the resolution of non-conformity issues in quality and production.
BQG has developed a range of bespoke methods and tools aimed at increasing the maturity and transforming industry practices, reducing time to market and production stoppages, and effectively managing and remedying crisis situations.
The founders of BQG wanted to realize the value of the firm that they had grown rapidly since inception. In addition, the founders wanted to find a synergistic partner to aid further growth and enable BQG to become a go-to-specialist for production performance improvement and regulatory compliance in life sciences.
Equiteq discussed the strategic growth options with BQG and ran a Valuation and Market Readiness Assessment (VMRA) workshop to identify and analyze potential market interest and risks involved with a transaction. Based on information provided by the founders and our knowledge of the likely buyer community, we developed an information memorandum detailing the attributes and value drivers in the business. Assystem was quickly established as the optimal partner and detailed terms were negotiated.
Shareholder exit goals & deal rationale between buyer & seller
Building on their success to date, BQG’s shareholders were seeking to accelerate the company’s growth trajectory by leveraging the resources, relationships and global reach of a potential partner. At the same time, the founders recognized the opportunity to de-risk their personal exposure, realizing value for what they had built.
For Assystem, the acquisition significantly moves the business forward in the implementation of its life sciences strategy. The teams share the same project-focused culture in a highly-regulated industrial environment as well as the ability to work closely with clients based on a true relationship of trust. The combination of the teams’ approach and expertise will enable the enlarged business to offer the market a one-of-a-kind service offering, with integrated solutions across the whole drug lifecycle.
How did Equiteq deliver value to the client?
- Working together with the founders and management team, Equiteq used its proprietary VMRA diagnostic to identify BQG’s key attributes and establish the optimal positioning of the business to maximize value and de-risk the transaction outcome, prior to embarking on a sale process.
- Using our deep knowledge of the sector, Equiteq was able to identify the value drivers that were most likely to appeal to a carefully selected group of potential buyers. These specific areas were expertly analyzed and described to Assystem, with a particular focus on the synergy potential between the firms, built on the growth opportunity of the combined entity.
- Equiteq provided advice around negotiation, valuation and deal structure resulting in the successful sale of a majority stake to Assystem.
Read the press release on this deal here.