Business valuation mandate in the context of the exit of a shareholder.
Evaluation mandate aimed at determining the economic value of a player specialized in medical devices based in Switzerland.
Mandate description
Mandate ofbusiness valuation conducted on behalf of a European institutional investor, as part of a From the exit of a shareholder within a Swiss company active in the development and marketing of innovative medical devices.
The company, based in Switzerland, designs and distributes implants and surgical solutions intended for spine surgery.
The objective of the evaluation was to determine fair economic value of the company on a given date, in accordance with international assessment standards And to financial governance requirements of the shareholder.
Key issues
The main challenges were to identify the drivers of value creation of a fast-growing technology company, while taking into account the volatility in the medtech sector And the sensitive nature of clinical data.
The mission required the application of several valuation approaches:
1. a intrinsic approach based on discounted cash flow (DCF)
2. a relative approach based on Market multiples observed for comparable listed and unlisted companies,
3. and a complementary (substantial) asset approach to assess the balance sheet structure and R&D investments. The practitioner's method was appended to the evaluation report.
THEeconomic value interval observed in the medical technology sector generally varied between 9x and 13x EBITDA, according to the level of innovation, the size of the patent portfolio and the clinical risk profile.
Approach and result
The evaluation was conducted according to a rigorous and independent methodology, integrating growth, profitability and cost of capital assumptions in line with Swiss market standards
The work made it possible to determine a value range consistent with sector references And of provide an objective basis for discussion between shareholders.
The analysis also made it possible to identify the differentiating valuation factors : R&D intensity, regulatory dependence, innovation pipeline and financing structure.
This mission contributed to securing financial governance of society and to increase transparency between stakeholders as part of the shareholding transaction.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.