|
The Client 
Emerging diagnostics venture, based on the east coast
and pre-revenue, whose initial R&D and commercialization were funded by a
series A round with accredited individual investors; strong intellectual
property rights, 510-K approval, no obvious competitors, with both therapeutic
and research applications.
The Deal
Series B round with institutional investors to fund beta
site tests with strategic partners and to begin next generation product
development (negotiations slated to start just as capital market conditions are
deteriorating).
The Need: Corporate Valuation
Objectivity,
from the perspectives of an institutional investor and a seasoned entrepreneur,
was essential to ensure that a good deal would be done fairly and quickly
before the capital markets cratered.
|
The Solution
-
Appraise the firm, based on its business plan and
known competitive advantages, using the comparable company method and our
proprietary database of medical technology firms.
-
Deliver difficult news to management and the board of
directors, who expect a valuation that is five times higher than our estimate.
-
Lead client to accept the valuation through a joint examination
of the data and assumptions and by underscoring the change in market sentiment.
-
Counsel the CEO during price negotiations.
The Outcome
The venture raised US$15,000,000 – at the valuation we estimated –
from an institutional investor syndicate led by a global, name-brand bank.
Return to Index
|