We work with a number of Bio Tech companies and over the last 12 months an increasing number of Bio Pharma companies are being funded, and with increased demand comes higher valuations.
Bio Pharma investment is once again main stream. Access to public markets is improving and the number of firms reaching maturity is reflected in the number of IPOs leading private placements after a long decade.
Clearly these types of companies need to be properly valued in view of the significant lack of marketability/liquidity faced by these stock holders and the considerable volatility experienced by recent IPOs.
After briefly leading the public markets in amount of capital raised, private placements markets have returned to their role as early innovators providing seed and early stage capital. The number and amount of restricted stocks issued to early stage investors, key persons, and employees is steadily increasing.
The realizable value of these restricted blocks may be considerably lower than the market price of small liquid holdings, and could generate opportunities for favorable tax treatment for recipients of the restricted stock. At Oxford we have worked with numerous clients in order to calculate viable discounted values using our audit tested methodologies. Our aim to provide defensible valuations through research and expertise whilst our past experience gives us the ability to be fast and efficient at providing you valuation insights you may not have thought of.
The information provided here is for educational purposes only and is not intended as tax advice. Oxford Valuation Partners does not represent in any manner that the outcomes described herein will result in any particular tax consequence. Prospective investors should confer with their personal tax advisors regarding the tax consequences based on their particular circumstances. Oxford Valuation Partners assumes no responsibility for the tax consequences to any investor of any transaction.