Operating in the life sciences industry can bring a variety of challenges. One area of challenge, particularly for those groups which have to meet fiduciary and financial reporting requirements, is to engage an experienced valuation consultant able to address the complicated post-acquisition merger guidelines. Our client required an expert due diligence M&A (merger and acquisition) valuation assessment.
Our client, a Global private equity-backed pharmaceutical firm, completed its first significant acquisition when it acquired a pharmaceutical manufacturer to expand its growing menu of generic products. Like many of Intone’s pharmaceuticals clients, client executive management sought an acquisition team to partner with, someone having a deep knowledge of the pharmaceuticals industry and post-acquisition financial reporting requirements.
Intone conducted a thorough M&A assessment of the takeover entity’s financial position and going concern forecast; acquired an unbiased statement of the entity’s value to understand the benefits and liabilities of ownership and how those affected the client’s financial positions. The acquisition included product inventory, laboratory, manufacturing facilities, equipment, real estate and contingent considerations.
We directed a current financial and technology assessment for merging all the assets, operations, and processes for the completed final combination of the two organizations. Intone’s M&A experts applied proper purchase standards, including all of the receivables portfolios, with all bad debt and appropriate valuation considerations.
Intone conducted a comprehensive analysis of all relevant IT applications, infrastructure and related IT assets to provide for a comprehensive IT due diligence program of back-office operations of the fully merged company. Our customized approach was based on an understanding of the client’s strengths and weaknesses.
Intone consulted with the client’s CFO, CIO, internal staff, internal and external auditors to ensure the procedures implemented were appropriate. Our professional staff’s deep knowledge of pharmaceutical assets, operations, IT infrastructure and financial reporting considerations provided invaluable expertise to our client in the evaluation of this transaction.
Our expertise enabled our client to navigate the complexities of all relevant accounting standards issues given the specifics in the transaction. In addition, to strengthen the digital IT framework, Intone developed a process plan, and executed extensive tests of all relevant IT controls and IT key performance indicators developing an inventory and a future state roadmap which was subsequently implemented.
By furnishing the client’s stakeholders with a clear evaluation and comprehensive entity assessment, incorporating a number of industry best practices, our client gained very informative and innovative insights on the relative asset value including all IT assets and the related risks and assurance they could quickly complete the transaction. All appropriate valuations were delivered in a fair and accurate format and Intone was able to support the client through the year-end audit process of the acquisition, as well as ongoing impairment testing. The process helped the client’s executives to complete complicated financial entries on the books and enabled them to identify IT assets and processes requiring improvement and the adoption of best processes and procedures from each operation to enhance the value of the combined operation.