By Jeff Williamson THE SITUATION: A healthcare company with a portfolio of products in development for treating cardiac conditions was fielding investor interest for a potential acquisition. The company wanted to weigh the relative merits of raising additional equity financing versus exploring multiple M&A offers, as these initial discussions indicated a price range that did
By Jeff Suchocki, CFA The Situation: Adoption of ASC 842 – Lease Accounting is mandatory for all private companies for fiscal years beginning after December 15, 2021. To comply with this mandatory adoption requirement, a privately held, clinical stage biotech company needed to understand a reasonable discount rate for multiple lease agreements. The company requested
THE PROBLEM: A healthcare technology company that sells its FDA 510(k) approved device and supporting dashboarding and analytic tools to hospitals was in the midst of a capital raising effort involving a one-on-one negotiation with an existing strategic partner. The company received from the strategic partner a “low-ball” valuation. The company’s management team and board
Value is ultimately what parties agree to. Sometimes this seems rational, other times irrational. The reality is that value often results from the ability or inability to create an effective bidding process and to persuade/anchor a strategic counterparty toward your perspective. Negotiating leverage and personalities are just as important in deal negotiation as market potential
THE PROBLEM: A development stage biotechnology company (considering an IPO in the near future) entered into a series of financings which required the valuation of components of the financings deemed to be a derivative for financial reporting purposes. THE SOLUTION: RNA worked with the company and their Big 4 auditor to develop a Monte Carlo
THE PROBLEM: Two of the largest pension funds in the world required an independent valuation assessment of the portfolio of a multi-billion dollar life science/ healthcare private equity fund. THE SOLUTION: Robust research, forecasting, modeling, comp analysis and valuation analytics to determine reasonableness of value indications. “We love working with you. You actually know what