How does the family of billionaire PuriflOH director, Bill Parfet, do business?
Here’s a glimpse, a glimpse from the business mind of Bill Parfet’s brother, Donald.
In many ways Don Parfet is similar to Bill. He loves Kalamazoo, Michigan. He’s entrepreneurial. He supports scientists. He backs med-techs. He’s schooled in the art of a deal. And he believes in meticulous due diligence.
Don Parfet is founder of Kalamazoo-based Apjohn Ventures.
“Apjohn Ventures is committed to working with scientists and entrepreneurs who are interested in building life sciences companies”, he says.
“We review hundreds of promising business plans each year and are excited about the deal flow in this region.”
Apjohn’s investment strategy seems identical to that of Bill Parfet’s Kalmazoo-based Upjohn Laboratories, second ranking shareholder in PuriflOH.
Apjohn looks for investments in pharmaceuticals, medical devices, diagnostics and healthcare services
It prefers early stage - defined as “an emerging technology with proof of concept and patents, a promising market opportunity, and an entrepreneurial team or world-class innovator”.
In other words, businesses similar to PuriflOH and its Michigan affiliate, Somnio Global.
Here’s Apjohn’s top 10 investment criteria:
1.Experienced, entrepreneurial team (CEO, scientific team, and advisors)
2. Novel product or platform technology
3. Solid intellectual property portfolio
4. Large unmet market opportunity
5. Strong competitive advantage
6. Initial proof of concept (preclinical data or prototype design)
7. Customer validation (customer revenues or corporate partners)
8. Clear milestones and commercialization plan
9. Attractive deal terms and valuations
10. Compelling exit strategy
As with brother Bill, Don Parfet screens many deals. “From the many business plans we receive, we actively screen candidates through our investment criteria.” he says.
“We invite selected companies to our office to present their story.
“After the initial meetings, we identify the best candidates and begin various phases of due diligence.”
This is how the Parfet family conducts due diligence:
“Initially, we ask for management backgrounds and references, full financials and capitalization tables, scientific papers, relevant patents, and market/competitive reports.
“Later, we will work with our scientific advisors on in-depth technical due diligence, conduct third party calls and research, and look closer at other items such as corporate/legal matters or freedom to operate patent matters.
“This process may take several weeks to several months.”
Then comes the deal.
“For a small set of companies, we will issue a term sheet and negotiate the final terms and size of the round,” Don Parfet says.
“We usually participate in the board at some level and remain "on call" to assist the management on matters such as strategy, finance, recruiting, operations, and exit.
“We like to "roll up our sleeves" and work with our management teams to build success.”
Are Don and Bill twins? No. Don’s a few years younger than Bill. And perhaps not quite as rich. But their late parents, Ted and Martha Parfet appear to have created them from the same mould.
The way Don Parfet does business gives us a special insight into the way Bill Parfet will help ensure the success of PuriflOH.
PO3 Price at posting:
$4.00 Sentiment: Hold Disclosure: Held
(20min delay)
