We help biopharma companies hire senior business development leaders, which gives us the opportunity to have regular, in-depth conversations about what makes deals succeed or fail. Through these discussions, clear patterns emerge about what truly defines a “good deal.”
While no two transactions are alike, and each deal reflects the unique circumstances of the companies involved, experienced BD leaders consistently point to factors beyond just valuation or term sheets. A good deal, they say, is measured not only in dollars but in its ability to support long-term success, build trust, and unlock future opportunities.
Below are the recurring themes that surfaced in these conversations:
1. Mutual Satisfaction, Not Zero-Sum Outcomes
One of the clearest lessons: a good deal leaves both parties feeling positive — at signing and in the years that follow. Deals that create resentment or leave one side feeling squeezed often sow the seeds for future problems.
Leaders emphasized that fairness, transparency, and a sense of balance aren’t just ethical ideals — they’re practical necessities in a sector where partnerships often span a decade or more. Goodwill built through equitable deals often leads to smoother execution, future collaborations, and reputational strength.
“We’re all part of the same ecosystem. Harmony matters.”
2. Strategic Fit Over Headline Price
Strong BD leaders look beyond immediate financial terms to ask: Does this deal serve our strategic objectives?
Whether the goal is to fund a launch, validate a platform, or unlock access to capabilities, the best deals advance a clear strategy. Several CBOs highlighted the risk of getting caught up in financial terms at the expense of fit — both in terms of the partner’s capabilities and alignment on how to develop and commercialize the asset.
A good deal supports the strategy, not just the balance sheet.
3. Choose Partners, Not Just Terms
The right partner brings more than money. They bring infrastructure, expertise, reputation, and alignment.
Many pointed out that partnerships succeed when both sides share a vision and communicate well. Cultural fit, responsiveness, and a genuine desire to collaborate outweigh even the most attractive financial package if the relationship becomes dysfunctional later. Deals signal more than transaction value; they shape how the market, investors, and future partners perceive you.
“You want someone who’s collaborative and trustworthy — the contract language can only get you so far.”
4. Clarity, Simplicity, and Executability
Several leaders warned against the temptation to chase clever structures. Complexity in agreements often leads to confusion, misaligned expectations, and friction down the line.
Successful deals prioritize clarity and executability. Milestones are tied to genuine value inflection points — not arbitrary targets. Both parties understand their obligations and how to track progress. In an industry where people change roles and companies frequently, simplicity helps ensure continuity and accountability.
Overly complex or unrealistic deal structures create friction and confusion. If teams can’t clearly follow the agreement, momentum breaks down — and execution suffers.
What looks impressive on a term sheet can quickly become a governance burden in practice. Clear structures help both sides stay aligned when inevitable challenges arise.
5. Flexibility and Future Upside
The best deals leave room to adapt. Structures that allow for future optionality — commercialization rights, regional options, co-development paths — provide flexibility as programs evolve and markets shift.
These elements often take more time to negotiate but are seen as elegant solutions that allow companies to avoid locking in suboptimal outcomes too early. Leaders stressed the value of scenario planning to avoid future regrets, particularly when it comes to royalties and long-term economics.
“Good deals capture upside through thoughtful structuring, not rigid terms.”
6. Transparency About Risk Builds Trust
Openly acknowledging risks — from development uncertainties to commercial hurdles — builds trust and leads to stronger structures. Several CBOs noted that partnerships built on shared recognition of risk lead to better alignment and more resilient relationships.
In licensing, overly back-ended deals or structures designed to shift disproportionate risk to one side often backfire over time. Transparency creates alignment, shared incentives, and more constructive governance.
“Identify risks openly and work together to structure around them — that’s how you create win-win outcomes.”
7. Reputation, Signalling, and Ecosystem Impact
Deals send signals. The choice of partner, structure, and terms all communicate something to boards, investors, and the wider market.
Partnering with credible, capable organizations sends positive signals — not just about the asset but about the company’s strategy and diligence. For private companies, these decisions shape future fundraising potential; for public ones, they can influence valuation and investor confidence.
“Choosing the right partner sends a clear message. That matters as much as the deal terms.”
Final Thought: More Than Just a Number
There’s no universal checklist for what makes a “good deal.” But for experienced biopharma BD leaders, certain principles consistently rise to the top: fairness, alignment, transparency, and strategic purpose. These aren’t soft factors — they’re what determine whether a deal creates real value, both today and in the years that follow.
What will your next deal say about you?