Valtech’s valuation team has recently completed valuation in relation to a transaction of a medical company. The focus of this analysis is the Valuation Medical Company, which develops IVD diagnostics products for various diseases. We are engaged to conduct purchase price allocation (PPA) and valuation of an additional investment option.
For a PPA assessment, one of the most important procedures is to identify the valuable intangible assets of the target company. It provides transparency in financial reporting, which helps investors and other stakeholders to understand the intrinsic value behind the premium paid for the target. Common intangible assets include customer relationships, backlog contracts, trademarks, patents, etc. There are different valuation methods for each type of intangible asset, and the valuation method normally varies case by case. Thus, valuers act as a crucial role in these types of valuation.
Experienced valuers like Valtech Valuation’s team can help clients identify potential intangible assets soon after understanding the business model of the target. We can also provide practical solutions on how each intangible asset can be valued under regulatory requirements. Without a clear scope at the beginning, there can be many surprises throughout the PPA engagement, which may delay financial reporting and affect investors’ confidence. In this case, we helped our client to confirm valuation scope and approaches at the beginning, which is a crucial part of our timely and accurate result delivery.
