Rick Mullin of Chemical & Engineering News gives a bright overview about PE activities showing which companies have been taken over by PE. But can the acquired firms satisfy PE's expectations, and are these expectations maybe not in line with the way how CDMO works?
There seems to be a fashion that Private Equity invests in CDMO's. In the case of F.I.S. this may be a chance to consolidate the operation and bring it up again.
I am commenting on the roles of PE and on the typical story about F.I.S.
Contract Development and Manufacturing Organisations need to build, maintain and cultivate a large network of contacts. The number of active contacts (a Sales Manager can maintain approx. 200 active contacts) is directly proportional to the number of RFQ's (Requests for Quotations) and acquired business. Building a sound portfolio of CDMO projects and customers takes at least 3 - 5 years. Customers are mainly looking for special technologies, products and processes. Managing CDMO is a profession