Client: Leading Financial Services Firms
Challenge: Value Unique Inventory in Small, Heavily Regulated Industry
A rapidly growing source plasma provider sought financing to expand its business. AccuVal was engaged by a global financial services company to appraise the company's inventory and consider multiple exit strategies. The client selected AccuVal based on its ability to analyze complicated problems in ways that bring clarity to the collateral and help lenders feel comfortable making huge loans.
The appraisal offered special challenges because the company's products are unique – the collection and sale of human plasma to be used in plasma-derived pharmaceutical products. The industry is relatively small, heavily regulated, and for the most part privately held. Pricing is based on supply and demand and is negotiated through private contracts, long-term supply agreements and some spot market considerations.
One reason AccuVal was engaged was its experience in valuing a global plasma-products business for a $600 million spin-off to an investment syndicate. This was the largest transaction of its type in industry history. The firm simultaneously worked for multiple-deal teams evaluating differing business plans.
AccuVal also subsequently appraised multiple acquisition targets that, when combined with the company, accounted for more than 60 percent of the worldwide collection and supply of raw plasma and plasma-derived biopharmaceutical products. The research and information supplied by AccuVal has played an important role in the success of the company.
To provide the necessary guidance, AccuVal combined its expertise with other industry experts and cultivated relationships with the Food and Drug Administration to validate its approach and the legalities of the recommended exit strategies.
AccuVal was able to provide lenders with a structure to support secured funding that would be the platform for the company's explosive growth.
Experience in valuing unique inventories. The ability to analyze complicated problems in ways that bring clarity to collateral. Reliable appraisals that support large loans. Realistic exit strategies. That's The AccuVal AdVantage™ at work.