Medical Device Financial Valuation

Integral to exit strategy is the determination of a medical technology’s value throughout its life cycle. A third party defensible financial valuation steeped in well delineated assumptions is critical to resonate credibility with potential investors. Valuation analysis aims to provide key decision makers with a defensible range of prices, which are backed by in-depth research and sound methodology, making a technology’s valuation vital to both potential acquirers and innovators seeking exit.

Traditional financial valuation methods are inadequate for development stage lifescience technologies. The challenge requires a team experienced with the nuances of Medtech, able to accurately capture the value and deliver a justifiable financial valuation for an emerging medical device that may be pre-clinical, or where comparables do not enjoy your value proposition.

Strategy Inc.’s valuation services consider the intricate nuances and unique elements of medical technology innovation and markets and provide decision makers with an independent defensible pricing strategy backed by in-depth research and rigorous methodology. Our proprietary medical device financial modeling and simulation capabilities have been developed over 20 years and benchmarked against current and relevant industry barometers.

A lifescience technology’s potential value is:

  • Supported by a thorough qualitative analysis of the market, current industry trends, and economic drivers to build credible projections
  • Informed by a review of the competitive landscape, product comparisons, and the adoption of relevant current technologies
  • Determined through triangulation of discounted cash flows, industry comparables and valuation by stage

Financial Valuation usually considers the following:

  • Market projections – usually at three levels
  • Modified discounted cash flow analysis
  • Private company comparable analysis, when available
  • Public company comparable analysis, where applicable

Strategy Inc. offers a range of financial services to facilitate fund raising activities at the highest valuation, identification of acquisition targets and outline of exit strategy. Identification of potential acquisition targets requires that Strategy Inc. has an in depth understanding of the both the technology under consideration to position for exit, and the specific space for the innovation.  With 20+ years of experience in medical technology innovation, there are many spaces where this knowledge is already resident.

Financial modeling including revenue projections are driven by multiple volume scenarios, penetration and adoption rates, average sales price, and other key drivers specific to their target market. Volume projections developed using competitive, population and epidemiological data, published studies, and other considered variances influenced by clinical application.

Strategy Inc. offers a range of financial services to facilitate fund raising activities at the highest valuation, identify acquisition targets and outline exit strategy.