1) Screening
As any traditional screening process, these are the following ‘must have’ for pre-selection of investment opportunities by Merieux Développement:
- Addressing unmet medical needs
- Delivering into a marketable product/service within a reasonable timeframe
- Implying a significant ‘break-through’ which can translate into price reimbursement
i.e. “Scientific & Medical value at reach”
2) Deal evaluation
Following selection of investment opportunities for evaluation, we are conducting a very thorough evaluation of assets and capabilities in order to better evaluate the company and qualify the investment opportunity at stake. Our investment policy follows objective and rigorous criteria:
- Quality and skills of the management team, according to the specific business context
- Attractiveness of related business with high identified sales potential and expansion beyond base business
- Competitiveness of underlying technology and business model
i.e. “Sustainable business model with significant growth potential"
3) Due Diligence and Investment negotiation
Investment negotiation can take place following detailed evaluation of the company and prior to final investment submission to our Investment Committee.
4) Investment decision & Management
Any investment should comply with following investment principles:
- Horizon of investment allowing us to reach sufficient return on investment
- Significant part of capital following investment (at least 10%)
- Full board involvement
Syndication is possible and can be discussed & structured with other investor(s).
