Industry Specialization Sharpens our Process
The U.S. animal health market makes up about 2% of the total U.S. pharmaceutical market ($9.9 billion animal compared to $450 billion human medicines). About 60% of animal health sales in the U.S. are companion animal products and about 40% are food-producing animal products. Pharmaceuticals account for more than half of sales, flea and tick medications are about 29% of the industry, and biologics are just over 19% of the industry. The U.S. animal health market is estimated to be one-third of the global market and generates around $10 billion of sales per year.
Source: The Animal Health Institute (AHI)
Each quarter we highlight Animal Health industry performance, transactions, trends, and valuations. We use the CTA Animal Health Index (CAHI) to represent the industry which is comprised of over 30 broad, global, public, companies primarily focused on companion animals.
Advising and representing owners who are selling their businesses is the foundation of our Investment Banking Practice. We have an exceptional team of professionals with the experience and skill sets to help owners maximize their return in a sale of their business. We understand the many facets involved in planning for, marketing and executing a successful transaction. Our disciplined sale process is designed to create a competitive bidding situation, which is the key to the best outcome for our clients. Working with successful business owners is a privilege that we find invigorating, enjoyable, and rewarding.
We have a well-defined and proven process of helping companies make acquisitions that are complimentary to their existing business or strategically adjacent to it. Since 2004 we have completed over 23 buy-side transactions. Our process includes defining the types of businesses that could be approached, creating a list of possible targets, contacting those targets, helping negotiate LOIs, and assisting in the closing of a transaction. We view ourselves as an “outsourced development partner” of our Clients’ internal acquisition teams.
Our Advisory Services include raising institutional equity and debt, valuations, fairness opinions, and consulting services. Most of our efforts have a contemplated M&A transaction in mind, although that can sometimes be several years in the future. We encourage owners to meet with us early in their planning phases so that when a transaction is contemplated, we are already their trusted advisors.
Cherry Tree’s Guiding Principals
Focused on an approachable culture
Long-term, committed relationships are key to how we achieve results for our clients, each other, and our communities.
Understanding our clients business
Our depth of industry expertise in four key sectors targets great outcomes for our clients.
Senior Level Attention
Every transaction has an executive lead
Seasoned Managing Directors interface directly with you and lead the entire process.