The Valuation Trap: When Accounting Standards Freeze What Should Be Fluid
Why Biotech Executives and Investors Should Understand the Hidden Cost of Methodological Rigidity If you’ve spent any time in the biotech space—as an executive navigating a financing round, an investor underwriting a deal, a board member reviewing portfolio valuations, or a CEO setting strike prices on employee options that actually help recruit a world-class team—you’ve […]
Client Success: Valuation Analysis for Revenue Cycle Healthcare Technology Spin-Out
THE PROBLEM: Determine the fair market value of a spin-out of an existing successful healthcare technology company for purposes of tax and transaction planning purposes. THE SOLUTION: Financial modeling and diligence, transaction support and fair market value opinion. “You are our go to team for valuation support. You know your domain and are responsive.” – […]
Scott Winder joins RNA to expand its Life Science Tax and Financial Reporting Valuation Group
RNA Advisors, LLC, a leading valuation and strategic advisory services firm focused exclusively in life sciences and healthcare technology, announced today that Scott Winder has joined the firm’s Valuation Advisory Services Group as a Managing Director. Based in the San Francisco Bay Area, Mr. Winder will work with RNA’s other senior officers to deliver a […]
Fairness Opinions: Why Expertise Matters Now More Than Ever in Life Sciences and Healthcare
Since 2015, RNA Advisors has provided valuation, transactional and strategic advisory support services to over 300 life science and healthcare services clients encompassing over 1700 engagements, totaling over $282 billion in asset and transaction value. Our clients include top-tier venture-backed private companies, small to midsize public companies, private equity and VC investors, large health systems, […]
Client Success: Healthcare Transaction Support to Assess Value from Different Perspectives
THE SITUATION: A healthcare company with a portfolio of products in development for treating cardiac conditions was fielding investor interest for a potential acquisition. The company wanted to weigh the relative merits of raising additional equity financing versus exploring multiple M&A offers, as these initial discussions indicated a price range that did not fully reflect […]
Client Success: Mandatory Adoption of ASC 842 – Incremental Borrowing Rate Analysis for Private Biotech
The Situation: Adoption of ASC 842 – Lease Accounting is mandatory for all private companies for fiscal years beginning after December 15, 2021. To comply with this mandatory adoption requirement, a privately held, clinical stage biotech company needed to understand a reasonable discount rate for multiple lease agreements. The company requested an estimated borrowing rate […]
Client Success: Navigating Strategic Investment in Healthcare Technology
THE PROBLEM: A healthcare technology company that sells its FDA 510(k) approved device and supporting dashboarding and analytic tools to hospitals was in the midst of a capital raising effort involving a one-on-one negotiation with an existing strategic partner. The company received from the strategic partner a “low-ball” valuation. The company’s management team and board […]
Client Success: Incremental Borrowing Rate Analysis for Publicly Traded, Clinical Stage Biotech
THE PROBLEM: A publicly traded clinical stage biotech company needed to understand the correct implied discount rate for a lease agreement in accordance with ASC 842 rules. THE SOLUTION: ASC 842 has specific rules relating to leases, including guidance on lease classification (operating versus financial) and how to discount a lessee’s lease payments to arrive […]
Why Valuation Matters in Early-Stage Life Sciences
“Value”, the outcome of a thorough valuation analysis, is ultimately what parties agree to. Sometimes this seems a rational outcome, other times an irrational one. The reality is that a life sciences or healthcare technology company’s valuation often results from the ability or inability to create an effective bidding process and to persuade/anchor a strategic […]
Adaptive Valuation Approaches in Life Sciences and Healthcare
In finance, theories about the efficiency of markets have been both extraordinarily elegant and disastrously wrong on many occasions. These so-called efficient markets concepts have brought about interesting tools like the Capital Asset Pricing Model and Black-Scholes or Cox-Ross-Rubinstein binomial lattice models as tools for understanding how to assess a company’s cost of capital or […]
