Small-company owners who have identified likely buyers are feeling pressure to pull the trigger and approve deals before threatened federal investment tax increases next year, says Raymond A. Miller, co-chair of Philadelphia-based Pepper Hamilton's intellectual-property group.
The tax cliff was a factor in last month's agreement by NOX Technologies Inc., a skin proteins research company that developed anti-aging products, to accept a $12.5 million offer from its longtime client Nu Skin Enterprises, Inc., a $2 billion-plus (yearly-sales), publicly-traded company based in Utah.
The deal includes NOX's patents and licensed technologies for products that Nu Skin uses in its ageLoc-brand skin-care products. "NuSkin was paying royalties so they decided to buy it," Miller told me from his office in Pittsburgh.
The sale enriches NOX chief executive Thomas B. Shelton and a handful of backers, including Malvern investor Thomas Maher, Maryland investor Richard Grieves, and other "friends and family" private investors. "Tom will move on to the next deal," Miller predicted.