Stout was engaged by a large private equity firm to value a portfolio of interests in eight healthcare and life science companies with a value over $500 million. The portfolio included companies that provide medical devices for optic surgery and cardiology, diagnostic imaging systems, and clinical and early stage pharmaceuticals. It was to be acquired by a newly formed entity that would be funded by the private equity firm and co-investors.
Our valuation was used by our client as they considered and negotiated the terms of the deal. As the largest portfolio company was in Phase III of the Food and Drug Administration (FDA) approval process, a significant focus of our efforts was consideration of the likelihood of FDA approval. As the transaction negotiations spanned several months, we were in continual conversations with portfolio company management to update forecast models as market and regulatory outlooks changed over time.