An affiliation with a major corporation with complementary business interests may be advantageous. A strategic corporate partner can provide development financing, expertise in clinical testing, distribution capabilities, and the like, to accelerate the commercialization of technology. A corporate partner typically will provide financing on terms considerably more attractive than those available from venture capital or other investment sources. A corporate partner may also have a captive venture capital fund.

For companies that are already public, a corporate partner may often invest in the company at premium prices, rather than at the discounts to market which venture and other financial investors expect. A corporate partner well positioned in the target market may enable rapid penetration, and therefore may assure greater profitability and entrenchment against potential competition. An affiliation with a major company can bolster credibility and enhance perceived value. It may facilitate future financings or make improved terms achievable.

Grayson & Associates, Inc. understands the perspective of major corporate partners in acquiring interests in smaller entrepreneurial companies. We maintain close relationships with a broad range of major companies to be aware of their specific interests and their philosophies in entering into affiliations. We are skilled in reviewing the business of an entrepreneurial company and relating it to the interests of potential corporate partners worldwide. Our experience and knowledge of potential pitfalls in corporate affiliations can help in structuring mutually beneficial arrangements.

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