Provided valuation expertise for developer of nucleic acid products

Provided valuation expertise for developer of nucleic acid products

A leading developer and manufacturer of custom nucleic acid products sought to form a new incentive equity plan in preparation for an initial public offering, and Stout's valuation expertise was called upon to determine the value of the new awards. Over the course of a multi-year relationship, Stout performed several purchase price allocations, including one in support of a 50/50 joint venture with a Japanese concern, semi-annual equity valuations, and goodwill impairment assessments for its three reporting units. Stout also valued certain preferred stock issued to a leading private equity investor, which maintained a conversion feature, accrued variable dividends payable in shares of additional preferred stock, and a put right. Stout valued this instrument and its various features utilizing a multi-scenario option pricing framework contemplating various exit scenarios and time frames, as well as a Monte Carlo simulation. Our client's success resulted in its enterprise value increasing from $300 million to $2.0 billion over a five-year time frame, culminating with a sale to a strategic acquirer.