Posted Fri, May 25th, 2012
By Paul Corcoran
Paul Corcoran, President & CEO of McKinley Scientific

McKinley Scientific was formed to provide a boutique market approach to a large industry. Our goal is to make the acquisition and disposition of scientific instrumentation an efficient and economical process. We use our capital to buy the technology our clients need. In exchange, the client will use the technology for a defined period of time at a reduced cost. Our clients see us as a high touch global service provider, working as a business partner.

I have spent the majority of my 30 year business career in the high-technology equipment sector. I started out in sales in the data communications and later the computer industry. Shortly after that, I entered the equipment leasing business centered on IBM mainframe computers. At one time, I managed a nearly one billion dollar portfolio of mainframe computers. Along the way, I was exposed to another high-tech business area when I formed a group servicing the semiconductor equipment industry. The equipment leasing business taught me about the great need to manage corporate technological assets and the risks inherent in not doing so.

ROE requirements

Exposure to those industry segments also taught me about the time value of money, return on equity requirements for stakeholders, and the factors that accelerate technology introductions and their impact on productivity.

This proved to be very valuable as our team began to examine the analytical instrument market, and the pharma industry in particular, as it related to managing these scientific tools.

One of the factors that stands out about our equipment segment is that, unlike the mainframe computer arena, there is no dominant vendor. There are literally hundreds of equipment manufacturers and dozens of technologies that impact our field This is good in that innovation is rapid, creative, and responsive to market forces. It is also difficult for a consumer. For example, how do you know which technologies to acquire and how do you take advantage of the forces of change that mark our industry today, and still control cost?

'Machine tool' model

Historically, users have typically adopted a 'machine tool' model to equipment acquisition. By that, I mean that assets are acquired as capital tools, depreciated over fairly long periods of time, and then disposed of after their useful life has been exhausted. That worked well when the useful life actually was a long period of time. Now, our industry is faced with shorter true utility periods, capacity management concerns, more rapid project refocus, and generally a need for greater flexibility. Compound that with spending constraints and you have a market that is poised for a different approach.

By understanding this market condition, we are able to provide very competitive lease structures to instrument users that provide them with the flexibility to get in and out of technology in the quickest and most economical method available. McKinley Scientific is then able to manage its investment risk in the instrumentation through re-marketing and providing quality pre-owned asset solutions to secondary market users around the globe. Our vendor independence insures a fair and consistent evaluation of equipment technology. McKinley Scientific is a valued partner that understands the existing industry challenges and, in addition, can speak the multiple languages within the business - particularly R&D and finance. Some of the corporations that have benefited from a structured program are among the most recognizable pharmaceutical companies and global CROs.

All of us at McKinley Scientific are passionate about our business. And we are passionate about gaining the trust of our clients. We do this by conducting business in the most transparent manner. Transparency equals trust and we are committed to this ideal. We are very excited about our ability to deliver services to our customers that take this changing environment into account. Our strengths are rooted in our understanding of the global macro market for this type of equipment. McKinley Scientific offers unique financing solutions to help organizations acquire new technology.