Biotech project typically belongs to the class of altnerative assets which require an unique set of skillsets of evaluation. Apart from conventional valuation methodologies (typically the DCF, market peers and cost-based approach), it is critical that you hire an advisor with demonstrated expertise in alternative approach, such as global search of comparable pipelines, milestone-based benchmarking, analysis on risk-adjusted economic scenarios, waterfall analysis and equity allocation methods, and access to a rich datababse of  emprical evidences.

Our specialists have deep exposure to the industry. We also helped many early-stage preferred investors to demystify their derivative-like preferred rights in order to address queries from Big 4 auditor’s. The preferred rights could often be rights on liquidation preference, IRR requirements, convertibility into more senior rounds, and attached derivatives (warrants, contingent events). Simulations and allocation methods may be adopted to distinguish the values of pre-A, series A, series B and so on, to meet Big 4 auditor’s requirements.