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/* Methodology */
[[Wiki section]]
==Process to Identify Possible Acquisition Targets==
Before identifying the possible acquisition targets, first companies needs to identify the objective of the merger and acquisition.
===Advantage of Mergers and Acquisitions===
The most common motives and advantages of mergers and acquisitions are:-
*Accelerating a company's growth, particularly when its internal growth is constrained due to paucity of resources. Internal growth requires that a company should develop its operating facilities- manufacturing, research, marketing, etc. But, lack or inadequacy of resources and time needed for internal development may constrain a company's pace of growth. Hence, a company can acquire production facilities as well as other resources from outside through mergers and acquisitions. Specially, for entering in new products/markets, the company may lack technical skills and may require special marketing skills and a wide distribution network to access different segments of markets. The company can acquire existing company or companies with requisite infrastructure and skills and grow quickly.
*Enhancing profitability because a combination of two or more companies may result in more than average profitability due to cost reduction and efficient utilization of resources. This may happen because of:-
**Economies of scale:- arise when increase in the volume of production leads to a reduction in the cost of production per unit. This is because, with merger, fixed costs are distributed over a large volume of production causing the unit cost of production to decline. Economies of scale may also arise from other indivisibilities such as production facilities, management functions and management resources and systems. This is because a given function, facility or resource is utilized for a large scale of operations by the combined firm.
**Operating economies:- arise because, a combination of two or more firms may result in cost reduction due to operating economies. In other words, a combined firm may avoid or reduce over-lapping functions and consolidate its management functions such as manufacturing, marketing, R&D and thus reduce operating costs. For example, a combined firm may eliminate duplicate channels of distribution, or crate a centralized training center, or introduce an integrated planning and control system.
**Synergy:- implies a situation where the combined firm is more valuable than the sum of the individual combining firms. It refers to benefits other than those related to economies of scale. Operating economies are one form of synergy benefits. But apart from operating economies, synergy may also arise from enhanced managerial capabilities, creativity, innovativeness, R&D and market coverage capacity due to the complementarity of resources and skills and a widened horizon of opportunities.
*Diversifying the risks of the company, particularly when it acquires those businesses whose income streams are not correlated. Diversification implies growth through the combination of firms in unrelated businesses. It results in reduction of total risks through substantial reduction of cyclicality of operations. The combination of management and other systems strengthen the capacity of the combined firm to withstand the severity of the unforeseen economic factors which could otherwise endanger the survival of the individual companies.
*A merger may result in financial synergy and benefits for the firm in many ways:-
**By eliminating financial constraints
**By enhancing debt capacity. This is because a merger of two companies can bring stability of cash flows which in turn reduces the risk of insolvency and enhances the capacity of the new entity to service a larger amount of debt
**By lowering the financial costs. This is because due to financial stability, the merged firm is able to borrow at a lower rate of interest.
*Limiting the severity of competition by increasing the company's market power. A merger can increase the market share of the merged firm. This improves the profitability of the firm due to economies of scale. The bargaining power of the firm vis-à-vis labour, suppliers and buyers is also enhanced. The merged firm can exploit technological breakthroughs against obsolescence and price wars.
'''Note:''' In this research report, researcher considered two following objective of merger and acquisition:
#To Enter in emerging markets
#To improve product portfolio
===Methodology===
* '''Step 1''': First, list all the players present in Ureteral Stent Market were identified.(The list of companies was retrieved from the FDA site from Registration & Listing database)
** Number of companies that were identified in this step: 20
* '''Step 2''': The second step involved identifying and eliminating companies that are large, and established players or the subsidiaries of the big players in the industry.
**Number of companies eliminated in this step: 14
**Number of (small) companies of interest left: 6
* '''Step 3''': Once the large, and established players were eliminated, companies were compared based on various parameters and rated on the scale of 5 to identify the best target. Please check the following table and dashboard:
**Number of potential target companies: 6
<br/>
{|border="2" cellspacing="0" cellpadding="4" width="80%" align="center"
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Company'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Headquartered'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Stent Details'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Company Type'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''2010 Revenue (Mn)'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''No of Employees'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Geographical Revenue Share'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''R&D investment (Mn)'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''No. of Patent'''</font>
|align = "center" bgcolor = "#4F81BD"|<font color="#FFFFFF">'''Technology Focus'''</font>
|-
|bgcolor = "#DBE5F1"|Applied Medical Resources Corp.
|bgcolor = "#DBE5F1"|USA
|bgcolor = "#DBE5F1"|Mesh ureteral stent<br>C-flex ureteral stent<br>Silicone ureteral stent<br>Tethered ureteral stent<br>C-flex ureteral stent<br>Ureteral stent<br>Silhouette pediatric stent
|bgcolor = "#DBE5F1"|Manufacturer
|align = "center" bgcolor = "#DBE5F1"|$282
|align = "center" bgcolor = "#DBE5F1"|1900
|bgcolor = "#DBE5F1"|USA: 62%<br>Asia: 32%<br>Rest of World: 6%
|bgcolor = "#DBE5F1"|$38.3 (13%)
|align = "center" bgcolor = "#DBE5F1"|212
|bgcolor = "#DBE5F1"|High
|-
|Bioteque Corp.
|Taiwan
|Bioteque Double Pigta
|Contract Manufacturer; Contract Sterilizer; Manufacturer
|align = "center"|$27.85
|align = "center"|350
|Taiwan: 100%
|$1.4 (5%)
|align = "center"|16
|Medium
|-
|bgcolor = "#DBE5F1"|Hobbs Medical, Inc.
|bgcolor = "#DBE5F1"|USA
|bgcolor = "#DBE5F1"|HM Ureteral Double Pigtail Stent
|bgcolor = "#DBE5F1"|Manufacturer
|align = "center" bgcolor = "#DBE5F1"|$2.30
|align = "center" bgcolor = "#DBE5F1"|22
|bgcolor = "#DBE5F1"|USA: 97.2%<br>Japan: 2.3%<br>Others: 0.5%
|bgcolor = "#DBE5F1"|$0.06 (2.87%)
|align = "center" bgcolor = "#DBE5F1"|1
|bgcolor = "#DBE5F1"|Low
|-
|Lake Region Medical Limited
|Ireland
|M-Wires
|Contract Manufacturer
|align = "center"|$84.86
|align = "center"|611
|Europe: 68%<br>USA: 21%<br>Others: 11%
|$8.48 (3.85%)
|align = "center"|8
|Medium
|-
|bgcolor = "#DBE5F1"|Martech Medical Products
|bgcolor = "#DBE5F1"|USA
|bgcolor = "#DBE5F1"|Ureteral Stent
|bgcolor = "#DBE5F1"|Contract Manufacturer
|align = "center" bgcolor = "#DBE5F1"|$23.00
|align = "center" bgcolor = "#DBE5F1"|180
|bgcolor = "#DBE5F1"|USA: 78.3%<br>Europe: 12.7%<br>Others: 9%
|bgcolor = "#DBE5F1"|$1.1 (4.79%)
|align = "center" bgcolor = "#DBE5F1"|0
|bgcolor = "#DBE5F1"|Low
|-
|Allium Medical
|Israel
|URS - Ureteral Stent<br>TPS - Triangular Prostatic Stent<br>BUS - Bulbar Urethral Stent<br>RPS - Round Posterior Urethral Stent<br>BIS - Biliary Stent
|Manufaturer
|align = "center"|$2.04
|align = "center"|20
|Domestic: 88.6%<br>International: 11.4%
|$0.082 (4%)
|align = "center"|2
|Low
|-
|}<br clear="all">
'''Note:''' Data for Geographical segment, R&D expenditure and Technology focus has been masked.
{|align="center"
|<gflash>1000 750 http://dolcera.com/upload/files/ranking1.swf</gflash>
|-
|}
<br/>
* '''Step 4''': Finally, after an in-depth analysis of the potential target companies’ on various parameters, following companies identified to be best possible target companies.
**To improve Product Portfolio : '''Applied Medical Resources Corp.'''
**To enter in Emerging Markets : '''Bioteque Corp.'''
===Company Profile===
====Applied Medical Resources Corp.====
{|border="2" cellspacing="0" cellpadding="4" width="60%" align="center"
|bgcolor = "#376091" colspan = "2"|<font color="#FFFFFF">'''APPLIED MEDICAL RESOURCES CORP.'''</font>
|-
|bgcolor = "#C5D9F1"|'''Revenues'''
|bgcolor = "#C5D9F1"|2010: $280 million
|-
|'''Net profit (2010)'''
|$20.89 million
|-
|bgcolor = "#C5D9F1"|'''R&D Investment'''
|bgcolor = "#C5D9F1"|2010: $ 38.3 million (13% of revenues)
|-
|'''Number of employees'''
|1900
|-
|bgcolor = "#C5D9F1"|'''Year Established'''
|bgcolor = "#C5D9F1"|1987
|-
|'''Headquarters'''
|USA
|-
|bgcolor = "#C5D9F1"|'''Key People'''
|bgcolor = "#C5D9F1"|CEO: Said S. Hilal
|-
|'''Products & Technology'''
|Specialty Areas:Cardiac/Vascular, Colorectal, GYN, Urology <br>New Products:Epix (Laparoscopic Intrumentation), GelPOINT (Advanced Access Platform), Kii Fios (First EntrySystem)
|-
|bgcolor = "#C5D9F1"|'''Products in Ureteral Stent'''
|bgcolor = "#C5D9F1"|C-flex ureteral stent, Silicone ureteral stent, Tethered ureteral stent, C-flex ureteral stent, Ureteral stent<br>Silhouette pediatric stent
|-
|'''Geographical revenue breakdown (2010)'''
|USA: $182.70 million (65%)<br>Others: $99.47 million (35%)
|-
|bgcolor = "#C5D9F1"|'''Company Overview'''
|bgcolor = "#C5D9F1"|Applied Medical Resources Corporation is a new generation medical device company founded in 1987 and headquartered in Southern California. It is involved in developing, manufacturing and marketing of innovative products for Minimally Invasive Surgery, Cardiac, Vascular, Urological, Colorectal, Bariatric, Obstetric, Gynecologic and General Surgery. The product portfolio covers 25 technologies and more than 700 products. The company has spread its business globally across 75 countries including Africa, Middle East,Americas, Caribbean, Asia, Australia and Europe through its network of international distributors.
|-
|}
====Bioteque Corp.====
{|border="2" cellspacing="0" cellpadding="4" width="60%" align="center"
|bgcolor = "#376091" colspan = "2"|<font color="#FFFFFF">'''Bioteque Corp.'''</font>
|-
|bgcolor = "#C5D9F1"|'''Revenues'''
|bgcolor = "#C5D9F1"|2010: $27.85 million
|-
|'''Net profit (2010)'''
|$20.89 million
|-
|bgcolor = "#C5D9F1"|'''R&D Investment'''
|bgcolor = "#C5D9F1"|2010: $38.3 million (13% of revenues)
|-
|'''Number of employees'''
|350
|-
|bgcolor = "#C5D9F1"|'''Year Established'''
|bgcolor = "#C5D9F1"|1991
|-
|'''Headquarters'''
|Taiwan
|-
|bgcolor = "#C5D9F1"|'''Key People'''
|bgcolor = "#C5D9F1"|
|-
|'''Products & Technology'''
|<br> NEPHROLOGY, UROLOGY, RADIOLOGY, CARDIOLOGY, RESPIRATORY CARE<br> CRITICAL CARE, IV ADMINISTRATION THERAPY, MOLDING PARTS
|-
|bgcolor = "#C5D9F1"|'''Products in Ureteral Stent'''
|bgcolor = "#C5D9F1"|C-flex ureteral stent, Silicone ureteral stent, Tethered ureteral stent, C-flex ureteral stent, Ureteral stent<br>Silhouette pediatric stent
|-
|'''Geographical revenue breakdown (2010)'''
|NA
|-
|bgcolor = "#C5D9F1"|'''Company Overview'''
|bgcolor = "#C5D9F1"|Bioteque Corporation manufactures and sells medical devices in Taiwan. It offers medical disposables for use in hemodialysis access, endovascular treatment, and other fields. It offers blood tubing lines, AVF needles, transducer protectors, and on line HDF with check valves or without check valves; IV infusion bags, precision IV infusion sets, drainage bags, insufflation tubing sets/filters, and various surgical drainage tubes; a range of medical components, which comprise blood tubing line components, percutaneous drainage components, infusion bag components, AVF needle components, precision IV infusion set components, and IV infusion bag components; a range of thermoplastic polyurethane catheters, including pigtail drainage catheter sets, double pigtail ureteral stent sets, biliary drainage catheters, percutaneous nephrostomy kits, and dialysis catheters; and other medical disposable products, such as closed suction catheters and artificial nose. The company also provides endovascular products, which consist of percutaneous transluminal coronary angioplasty, percutaneous transluminal angioplasty, angiography catheters, guiding catheters, sheath introducers, MRI/CT/angiography syringes, micro catheters, and hydrophilic coated guidewires. Bioteque Corporation was founded in 1991 and is based in Taipei, Taiwan.
|-
|}
==M&A Due Diligence Process==
== Phase 1: Landscape overview ==
=== Ureteral Stent: Concept ===
*Flash Player is essential to view the Dolcera Dashboard
* To access the Dashboard you have to signup. You can do so by clicking [https://www.dolcera.com/auth/index.php/login '''here''']
= Key Artifacts =
* [[Investment Heat Map ]]
* [[Revenue Heat Map ]]
* [[Patent Heat Map]]
* [http://www.dolcera.com/website/demos/dental/main.html Dynamic Patent Dashboard]
* [http://www.dolcera.com/ipmapdemo/stent_model.swf Stent Landscape-Flash]
* [[Company Profile - Flash]]
=Removed Sections=
[[Removed Sections]]
