Business Valuation Mandate for a Medtech Shareholder Exit

Mandate Description

The mandate consisted of a business valuation assignment carried out on behalf of a European institutional investor, in the context of the exit of a shareholder from a Swiss company active in the development and commercialisation of innovative medical devices.

The company, based in Switzerland, designs and markets implants and surgical solutions dedicated to spinal surgery.

The objective of the valuation was to determine the fair economic value of the company as of a specific valuation date, in accordance with international valuation standards and the financial governance requirements of the shareholder.

Key Issues

The main challenges of the mandate were to identify the value creation drivers of a fast-growing technology company while taking into account the volatility of the medtech sector and the sensitive nature of clinical data.

A key objective was to reflect the innovation profile of the company while integrating regulatory, technological and market risks.

The assignment required the application of several complementary valuation approaches.

An intrinsic approach based on discounted cash flow modelling was implemented to reflect long-term growth and profitability assumptions.

A relative valuation approach was also used, based on market multiples observed for comparable listed and private companies.

In addition, a complementary asset-based approach was applied to assess balance sheet structure and the level of investment in research and development.

The practitioners’ method was appended to the valuation report as a consistency check.

Observed valuation multiples in the medical technology sector generally ranged between nine and thirteen times EBITDA, depending on the level of innovation, the size of the patent portfolio and the clinical risk profile.

Approach and Results

The valuation was conducted using a rigorous and independent methodology, integrating assumptions on growth, profitability and cost of capital consistent with Swiss market practices.

• The analysis resulted in a valuation range aligned with sector benchmarks and provided an objective basis for discussions between shareholders.
• The work also identified the key differentiating valuation factors, including R&D intensity, regulatory exposure, innovation pipeline and financing structure.

This assignment contributed to strengthening the company’s financial governance and increasing transparency between stakeholders as part of the shareholding transaction.