Provided solvency opinion to $75 billion life sciences company

Provided solvency opinion to $75 billion life sciences company

We provided solvency opinions to the board of directors of a life sciences company related to the spin-off of one of its major divisions. The parent company sells research-based drugs, medical devices, diagnostics, and nutritional products. As part of the spin-off, the new company would assume over $500 million in debt and be required to acquire over $250 million in operating assets in the following years. We issued opinions regarding both the parent and the spun entity. Our due diligence involved an in-depth review of the transaction, site visits, interviews with senior management teams, an evaluation of financial and operational risks, and consideration of broader industry and market conditions. Our financial analysis included an income-based valuation via a discounted cash flow approach, as well as market multiples for guideline public companies and precedent M&A transactions. We worked closely with the senior management teams and delivered the solvency opinions to the board of directors under a tight frame.