Better Deal Terms
“We got significantly better deal terms as
a direct result of teaming with KR.” – Biotech CEO
Partnering negotiations had dragged on for nine months. When the small-company CEO called KR, he was ready to “walk”: the deal terms being offered for his company's enabling technology just weren't sufficient. He asked KR to analyze the partner-proposed deal terms and the logic that partner had used to justify them. Working in the background to support the CEO as lead negotiator, KR identified significant flaws in the partnerís data and logic — flaws that if corrected would lead to much better deal terms for KR's client. KR also helped him think through just how to make the appropriate arguments effectively within the context of the previous negotiations. He succeeded. Just five weeks later, the partner came back with revised proposed deal terms that included a 50% increase in upfront and milestone payments and a 30% increase in downstream royalties. KR's client was delighted at how far they had “moved,” recommended to his board that the deal proceed. The board agreed, and the deal was executed soon after.