Presentation Guide for Life Science Companies

Posted April 20, 2018 by OCP | Post a Comment

David H. Crean, PhD, Managing Director and head of our Life Sciences and Healthcare Practice Group provides his thoughts and guidance to entrepreneurs, founders and business owners in the life sciences sector on what he has seen as successful pitches to investors and strategic companies in the initial pitches of their company and technology. By providing as much of the information noted below during the process, we believe that you can improve the probability and chances of landing a transaction that supports company growth or exit strategies. David has also previously authored related articles on this topic that can be viewed here and here. Happy to clarify any topic if needed.

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Healthcare, Life Sciences, Blog Article, Strategic Advisory

Anatomy of a 409a Valuation

Posted October 18, 2016 by OCP | Post a Comment

By Channing Hamlet

Managing Director, Objective Capital Partners

Overview

In the wake of a number of accounting scandals in the early 2000s (Enron, Tyco, WorldCom), the IRS enacted new legislation, Section 409a, to curb perceived abuses in deferred compensation.  This was mainly a reaction to executives of these companies withdrawing significant cash from their deferred compensation plans at a time when the companies were failing and shareholders were left holding the bag.

In typical IRS fashion, the reaction was significant and far-reaching.  As a result, Section 409a is a large and relatively complex body of legislation. To boil it down to a simple concept: if a company provides guaranteed compensation to a recipient, taxes are due at the time the agreement is made rather than when the compensation is paid.

As part of 409a, beginning December 31, 2008 the IRS required private companies to perform formal valuation analysis when granting stock options to ensure that the strike price of the option is granted at or above fair market value of the Common Stock.  Going back to the spirit of 409a described above, if the strike price is below fair market value, the recipient is supposed to recognize income.  As part of the 409a regulation, the IRS provides a safe harbor for companies that choose to work with a qualified appraiser.

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Business Valuation, Blog Article

Manage Your Business to Achieve Maximum Price When You Sell

Posted September 22, 2016 by OCP | Post a Comment

By Channing Hamlet
Managing Director, Objective Capital Partners

For business owners to truly assess the potential value of their business, they must first understand what drives business value in their industry. While at a very high level one can use metrics like Enterprise Value (EV)/Revenue or Enterprise Value (EV)/ EBITDA multiples to assess rough hypothetical values, the reality is that each industry has a unique valuation metric that is used to assess businesses that operate in a particular space or sector. Additionally, there are a number of factors besides just growth and profitability that drive significant value.

Successful business owners and leaders create, understand and track specific metrics that increase the value of their business. This article was written to assist you in defining the things to think about in order to manage and grow the value of your business.

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Business Valuation, Blog Article, Sell-Side M&A

This article is provided for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, Objective Capital Partners and BA Securities, LLC makes no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person.

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San Diego Office:
3636 Nobel Dr., Suite 160
San Diego, CA 92122

Los Angeles Office:
10100 Santa Monica Blvd., Suite 300
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Trever Acers
Managing Director
858.663.8662 telephone
trever.acers@objectivecp.com

Channing Hamlet
Managing Director
858.342.4939 telephone
channing.hamlet@objectivecp.com

David H. Crean, Ph.D.
Managing Director
858.461.9490 telephone
david.crean@objectivecp.com

Jack J. Florio
Managing Director
858.864.4339 telephone
jack.florio@objectivecp.com