The subject may sound strange but it is true that one encounters such instances in day to day business deals. I was part of one of the out licensing deals of my Client A, a biotech company that was interested…
I was discussing with one of my clients’ partner regarding the valuation of a biotech product. The product is supposed to be co-developed by both parties at the facilities of the partner in an emerging market.He argued that I should…
Do Intangible assets have different set of rules to value them? The answer is No. It’s only because of accounting rules that allow them to look differently. The accounting rules are consistent in their treatment of manufacturing companies but it…
Despite the fact that Valuation is subjective, there cannot be any argument on tweaking the fundamentals of Valuation – risk, growth and cash flows based on rules of thumb. That said, one could see many valuation reports floating around with…
Finally, US Biotech sector has recovered from slump and has some good news to share. Around 10 companies were listed in the US market this year and there are more in the offing. The public biotech companies have outperformed recently….
It’s always easier to value a public company that has all the data you are looking for. However, the real test of a valuation expert lies in valuing young start-up companies. These companies do not have any historical data; there…
Scientists working at Centro de Regulaci?n Gen?mica (CRG) in Barcelona have managed to reprogram lymphoma and leukemia cells and stop them from being malignant. Dr. Thomas Graf and his team had previously demonstrated that it is possible to reprogram one type of…
In our earlier post on valuation, we had discussed whether one should use the licensor’s or licensee’s cost of capital during out licensing. In this issue, we elaborate on the implications of using wrong discount rates. Let’s assume a hypothetical company A…
Which side of the balance sheet creates Value? This is an interesting question. While valuing a company, one always tends to focus on equity or debt side. However we forget the fundamental fact that the value of any business always…
I was working on the valuation of a biotech product in Dec 2012. I was almost done with all the cash flows and discount rates and I was about to calculate the net present value when one of my colleagues…