Portfolio Development
Product Portfolio Acquisition (PPA)
The products you want without buying a company.Developed by us for you on a project-by-project basis.
- Full IPR and data handover
- Single products to full range
- Focussed and cost-effective
- Fast-track NPD
- Includes industry certification
Ex Dynamics introduced ‘Product Portfolio Acquisition’ (PPA) as an alternative to the traditional business acquisition model. It presents enormous benefits to the acquirer. When seeking growth via enlarged product offering, there were always three options – we’ve added a 4th.
Acquisition
- Vast time and cost from initial scoping to completion and integration.
- Significant post-completion HR and restructuring costs.
- Potential sales partner clashes and possible reluctance to adopt acquired products.
- Re-certification and internal NPD costs to bring the portfolio up to current standards.
- Initial sales increase from the target’s existing customer base can be short-lived.
Asset Purchase
- Availability is often non-existent.
- Why would a business divest a product portfolio?
- Out-dated products or approval?
- Declining market share?
- Something less obvious?
In-House Development
- Overall internal cost and time taken is often unnecessarily high.
- Mobilising and synchronising multiple departments across large global businesses is a complex task.
- The cost of running a dedicated NPD department is often prohibitive.
- Focus? Often dispersed across multiple upgrades, projects or amendments to existing lines.
PPA
- Products developed to client requirements with “look and feel” of existing products.
- Shifts the risk and cost of development failures to a third party.
- Time-scaled and costed – defined budgeting.
- Products are prototyped, tested and certified in client’s name.
- Delivered for integration into client’s or nominated manufacturing plant.
- Saves time, cost, resource and guarantees expertise and experience.
- Terms can be geared to suit individual businesses.
The 5 stages of PPA
Initial Proposal
Outline project scope evaluation and viability.
Client acceptance
Client confirms the desire to proceed to Stage 2 and signs NDA
Detailed Proposal
Outline a more detailed technical specification of proposed product portfolio
Client Response
Client assesses proposal and suggests any changes to specifications according to their specific requirements.
Draft Proposal
Finalise complete technical proposal including deliverables and timescales
Agreement Process
Client and Ex Dynamic determine terms to acquire complete portfolio based on revised technical detail arrived at during stage 2.
Terms & Milestones
Agree terms and milestones delivered to trigger stage payments
Acceptance
Ex Dynamic prepare standard SPA for signing by both parties.
Project Completion
Private online shared technical centre established for collaboration and project update, clarification and monitoring purposes.
Handover
Assignment of all prototypes, test samples, certification, manufacturing documentation, IPR, tooling and title to client