Valuation

In the Life Sciences industry, taking a medical device or a new therapy through the testing and regulatory process, then bringing it to market, is impossible without a deep pocket. With a development process that can take years, Life Sciences companies need an influx of capital at every stage. This is where valuation plays a key role. For any type of negotiation activity, valuations are crucial.

BPM's Life Sciences group performs various types of valuations as required by our clients. Valuations for early stage and biotechnology companies require particular skill due to the limited applicability of standard tools and techniques. We ensure that each valuation is comprehensive of relevant IRS and FASB regulations and GAAP protocols, and meets the highest professional and ethical standards. Overall, our goal is to provide your company, along with your owners, attorneys, and other consultants, with the most accurate information.

Employee Stock Options
For early-stage companies, stock options issuance is a popular and practical way of motivating employees and attracting talent. The difficulty lies in settling on the right issuing price, as both undervaluing and overvaluing the stock present problems. In addition, severe penalties can result in the failure to follow all tax and reporting requirements.

There are various options pricing models that can be employed. Our team has advised and completed numerous valuations in the area of employee stock option plans and enabled our clients to employ this method of compensation with confidence.

Intellectual Property
When intellectual property is the powerhouse behind your company, your business’s worth is highly impacted by these intangible assets. It makes valuing your company a challenge; after all, how do you measure the monetary potential of an idea?

Our team possesses a thorough understanding of the methods of valuing technology (including patents), copyrights, trademarks, customer relationships, and other forms of intangible assets, in preparation for transactions, capital financing, pricing, and litigation support.

Purchase Price Allocation
Before the completion of a business sale, the acquired company’s assets and liabilities must be accounted for in accordance with SFAS 141 and 142. This is not a trivial matter, as intangible assets must be identified and valued so that it can be separated from goodwill.

Our valuation team is deeply experienced in providing purchase price allocations to life sciences companies. With a thorough understanding of the accounting standards and methods of valuing intangible assets, you will receive accurate information in a timely manner.

M&A Transaction
With the rapid advancement of medical technologies, the life sciences industry has experienced unprecedented growth and capitalization over the past few decades. As the globalization of the life sciences industry continues to increase and mergers and acquisitions become more frequent, the regulations that govern such transactions grow more complex. Whether you are looking to merge or acquire, a valuation is the critical first step.

Our valuation specialists have prepared many companies for mergers and acquisitions. With our experience-based insight into the life sciences industry, we can accurately arrive at the worth of your company to allow for a smooth transaction.