Strategic Alternatives Evaluation for RFID Technology

A leading innovator of RFID solutions for the pharmaceutical and healthcare industries was approached by its largest distributor with a buy-out offer. Though the distributor accounted for over 50% of revenue at the time, the company was developing new technologies with broader market applications, accumulating proprietary data, and building lasting relationships that could mean substantial revenue and earnings growth in the near future. Nevium was retained to evaluate the company’s strategic options and provide valuation calculations under different scenarios to assist owners and investors in deciding to accept or reject the acquisition offer.

Through market research, business forecasting and use of Nevium’s IP valuation apportionment model, Nevium was able to identify and quantify several opportunities for MEPS to leverage its IP into substantial earnings growth. Based on its analysis, Nevium recommended that the company reject the acquisition offer and continue to develop their technologies, products, brand awareness and customer relationships.  Since Nevium’s analysis, the company has been able to exceed its projections, enter new markets and increase its earnings.

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