Life after the bubble bursts

• André MICHEL
  Chairman and managing director, Aureus-Pharma
  
• Dominique JACQUET
  Professor, Paris X University (Nanterre)
  

Summary

Start-ups need capital to finance their first steps. Sometimes, capital markets are at rock-bottom. However, after speculation bubbles burst, sometimes investors are particularly cautious, even if the company which is looking for outside investment has a reasonable development plan, real technological skills and credible clients. The solution is a contingency plan. Aureus-Pharma decided to activate its "alternative plan" which was to make use of its 'in-house skills pool' without abandoning the initial plan, and try to generate the cash-flows necessary for survival whilst waiting for the market to recover from the doldrums. However, sometimes, the "alternative plan " had surprises in store... Appreciation of the 'skills pool', an intangible asset of the company, is unfortunately ignored in many company financial presentations, and distorts the risk analysis leading to serious financial difficulties.

Summary translated from French by Rachel MARLIN.

• The entire article was written by Élisabeth BOURGUINAT.

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