Expert Valuation
Services
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Bridges Capital can provide independent expert valuation analysis and
develop sophisticated valuation models that serve as
financial management tools for your company. Our
analysis enables you to assess the viability of new
business opportunities (M&A, new projects, licensing deals, etc.),
including the impact of those opportunities on your P&L, on your
cash flow statement and on the timing and magnitude of your funding
needs. Scenario and sensitivity analysis further illustrates the
impact of best
and
worst case scenarios for many variables (price, market penetration,
market share, various costs and so on) on your company's financial
performance. Our valuation models are designed to enable business
owners, executives,
managers and boards of directors to make better educated business
decisions that maximize company value.
Valuation Methods
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Bridges Capital has expertise in many valuation methodologies,
including but not limited to discounted cash flow (DCF), probability
adjusted DCF (for pharma/biotech), relative valuation and venture
capital valuation. In most cases DCF is the cornerstone of the
valuation process, while relative valuation models and venture capital
valuation models are used to provide insight into what the public
markets, potential acquirors or venture capitalists are willing to pay
for similar assets. When performed in combination, these
valuation methodologies will provide you with a reasonable valuation
range for your specific business situation. The insight provided
by a Nine Bridges Capital valuation will put you in a more informed
decision-making and negotiating
position.
Probability
adjusted DCF for Pharma/Biotech companies involved in drug development
is the industry standard. It is used by virtually all
international pharma/biotech companies. Using our knowledge of
probabilities of
technical success in various therapeutic areas as well as our knowledge
of international and domestic pharmaceuticals markets, Nine Bridges
Capital will develop an accurate valuation model for your or your
potential partner's drug
development portfolio and will therefore prepare you for your
partnership (M&A,
in-licensing, out-licensing, JVs, etc.)
negotiations. We highly recommend that you not enter into any
partnership negotiation without understanding the value of the drug
candidate(s) in your and/or your partner's portfolio in all possible
target markets. A
properly constructed valuation model from Nine Bridges Capital is a
tool that you can use throughout the negotiation process to ensure that
you either bid/receive fair value for your partner's/your portfolio
under any deal structure, whether in-licensing out-licensing, selling
or acquiring.
Scenario Analysis - Strategic Planning & Deals
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Bridges Capital's valuation models serve as
powerful decision support tools during the strategic planning and
deal making
process. We typically value a company or project at three levels,
building high, medium and low scenarios. Within a chosen
scenario, sensitivity analysis measures the variability in value due to
changes in input assumptions, including price, market penetration,
market share, various costs on the P&L and so on. This
detailed analysis is used in order to identify and quantify the risk
associated with a specific scenario so that the appropriate contingency
plans can be developed to mitigate those risks. Our ultimate goal
is to ensure that you are prepared to make well-informed business
decisions during your strategic planning or negotiation process,
whether you are
negotiating
an acquisition, divestiture, license agreement, JV, VC or PE financing,
or any other major business transaction. Nine Bridges Capital
will make sure that you are prepared.
Please do not hesitate to Contact
Nine Bridges Capital if you have any
questions about our valuation services.