THE CHALLENGE
The act of innovation does not, by itself, deliver instant financial return.
Therefore, the question is: How can Melior maintain the freedom to continually innovate, develop, and quickly commercialize product, while simultaneously delivering high return to shareholders?
Consistently achieving these two goals necessarily requires very different skill sets. To address this challenge, we developed the Melior Business Model.
THE SOLUTION: THE MELIOR BUSINESS MODEL
Our product is businesses. Melior spins out defined commercial entities led by industry leaders to focus on and drive operational growth and commercial sales quickly, maximizing operational enterprise value. Through a license and support agreements approach, Melior receives a royalty stream that funds ongoing development and exploitation of its protected platforms, providing value to its shareholders.
This business model is designed to maximize monetization value from each product and deliver returns efficiently to shareholders. It separates commercial activities from transformational product development. This way, Melior has a clear, self-funded purpose and is not limited or constrained by commercial operations. Melior itself is not asset heavy, enabling it to adapt to market needs. Our product development team is strong and retains continuity. Each product Melior develops is set up for commercial success in its distinct market, with a dedicated, autonomous industry team and its own strategic financing.
Simple in its construction, the Melior Business Model contains three key interdependent elements: Melior Product, a Revenue Generating Intellectual Property Portfolio, and a Diversified Portfolio of Commercial Companies.
(i) Melior Product
Melior Product is significantly de-risked and market ready. It encompasses all aspects of technical performance—manufacturing and scaling, cost, market positioning, and initial customer development & testing—to fully demonstrate the value of the offering. Melior Product is delivered to the new commercial company, ensuring a product that performs, can be produced/scaled and that the market wants. With this in place, market/customer adoption cycles are shortened, speeding the operating companies to early revenue and rapid growth. Before it is spun off into a commercial entity, Melior Product has successfully passed at least the following major hurdles:
- Clear demonstration of competitive advantage
- Customer sampling, testing and acceptance
- Pricing approval
- Intellectual property protection
- Manufacturing cost review
- Vetted production design and confirmed scalability
- Any and all regulatory reviews (PMN, etc.)
(ii) Revenue Generating Intellectual Property Portfolio
Intellectual property is the life‐blood of Melior. Without it, technology platforms cannot be protected, licenses cannot be granted (and defended), commercial sales will be difficult and royalty streams will not flow – therefore Melior must ensure that it does everything to protect its current knowledge and future value. The depth and breadth of our patent library gives Melior the ability to structure licenses that provide tailored monopolies to specific technologies for specific markets.
(iii) A Diversified Portfolio of Commercial Companies
Transition and support of Melior Product and IP have been addressed, and while these are absolute necessities, it is important that Melior streamline the company operation and set‐up to allow the organization to focus in the market. For these reasons Melior will ensure that there is strong and experienced management in place, further supported [under contract] by a variety of “back room” processes and resources that relate to Finance and Accounting, HR and Administration – removing the day-to‐day distraction of getting a new business to function.
Operating under license with Melior Product and established with world‐class management teams, the companies are solely focused on driving revenue. This dramatically reduces the risk and amount of working capital required to establish the business. The success and rapid growth of these companies provides rapid and numerous monetization events for Melior shareholders.
