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home > ebr > spring 2004 > preparing for the due diligence process - plan your way to success
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European BioPharmaceutical Review

Preparing for the Due Diligence Process - Plan your Way to Success

Anyone who has been through a due diligence process will remember it as a painful, time-consuming and frustrating process, but something that has to be endured to get the transaction done. The secret to managing the process is to be organised and plan the process properly. As the target, you must be clear about where the perceived value in the business will be and what will be asked of you. And as the acquirer, you will need to be clear about the business rationale for the transaction and what the key issues for your business are. Verification in the listing process is probably the most exhaustive due diligence process. Therefore, an understanding of what is involved, why it is necessary and the issues that need to be anticipated and planned for can avoid problems and save time later. In our experience, deals run more smoothly and the costs are significantly reduced when the process is properly planned and all the information is readily available. Moreover, a potential purchaser of, or a venture capitalist looking to invest in, a target that has a well-organised and efficient due diligence process, will be left with a strong impression of an effective and able management team, and is less likely to find surprises, ensuring that a company gets maximum value. For companies in the life sciences area, their main asset is likely to be intellectual property. As a consequence, it is likely that any due diligence will focus on assessing the value of their intellectual property, how it is being exploited and how robust their rights are from infringement by third parties.


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By John Wilkinson and Nicola Maguire, Partners in the Life Sciences Group at Bird & Bird
John Wilkinson is Joint Head of Bird & Bird's Life Sciences group. John has a degree in Chemistry from Imperial College and began his career as a Chemist with Laporte Industries and ICI Pharmaceuticals (now AstraZeneca). After completing his training and qualification as a Solicitor, he specialised in commercial intellectual property. After nine months' legal secondment with a global pharma company, John joined CRCT, the technology transfer arm of the Cancer Research Campaign, as Legal Counsel and Company Secretary. John is a Member of the Intellectual Property Advisory Committee of the Bioindustry Association and the Legal and Regulatory Editor of the Journal of Commercial Biotechnology.


Nicola Maguire is a partner in the Life Sciences group specialising in corporate law with particular experience of mergers and acquisitions and joint ventures. Many of the transactions on which she advises involve an international perspective. Nicola works extensively with John Wilkinson advising clients in the life sciences sector. Before joining Bird & Bird, Nicola spent several years working as Legal Counsel for US multi-national, GE, and for Cable and Wireless advising on corporate matters and a broad range of commercial issues.

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John Wilkinson
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Nicola Maguire
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