Valuation for Exit of Venture Funded Start Up
Sell Their Company: An early stage innovative medical technology company, largely funded with venture capital, was seeking an exit and needed a third-party valuation to validate company value and be able to capture the highest price point.
The company retained Strategy Inc. to perform a Market Analysis and Financial Valuation to support negotiations for a robust and defensible acquisition price for their emerging technology. The Market Analysis outlined the technology, projected adoption and specific features that were prioritized by the target stakeholders. The Financial Valuation was based on the anticipated projected revenue for the innovation.
Strategy Inc. Proven Processes
At the request of the start-up’s CEO, Strategy Inc. developed a solid medical device valuation using a triangulated model of market value, discounted cash flows and industry comparables. This valuation included in-depth Market and Competitive Positioning Analyses to outline the current market value, including both direct and indirect competitors of existing and emerging contenders.
At the cornerstone of the valuation analysis was the development of low, medium and high projections against which to triangulate value. These projections, prepared for the US and EU market, addressed the unique market dynamics for both locations. Both top-down and bottom-up approaches were used to develop the projections that accurately describe the company’s technology development process, go-to-market strategies, and market adoption behavior.
Strategy Inc. Generates Results
A carefully and methodically constructed financial valuation is critical to any lifescience company seeking a favorable exit. Strategy Inc.’s analysis provided the company with a robust valuation to strengthen the start-up’s negotiation position with a number of potential acquirers to pursue a successful exit for the medical device start-up.
Learn more about a Strategy Inc. Financial Valuation.
The Financial Valuation is well partnered with the market and competitive positioning analyses that inform financial valuation determination. Furthermore, a medical device company at this stage should also consider the inclusion of an exit strategy to identify and target potential acquirers.
Other Projects for Similar Clients
Other projects that have been executed for similar medical device clients seeking exit include, but are not limited to, the following:
- Valuation of an Israeli-based interventional cardiology technology in a crowded market for acquisition by a multinational company
- Voice of the Customer with key opinion leaders to identify the projected adoption and exit strategy for an energy-based dermatologic device
- Competitive Analysis to provide an in-depth understanding of the global competitive landscape to identify competitive advantages and determine product positioning for a novel therapeutic device in women’s health