MedTech & Devices

Mercer Capital has a long history of serving clients across the medical device and medtech industry.  Our clients range from early-stage ventures to mature, diversified public and private multinationals.  For younger companies, our valuations support corporate planning around forthcoming fundraising rounds, equity compensation grants, and reorganizations.  For larger and more established companies, we provide valuations for tax compliance (ownership transition and corporate planning), financial reporting (purchase price allocations and impairment testing), and transaction advisory.  We also perform periodic portfolio valuations for private equity and venture investors.

We combine two complementary strengths: valuation expertise and deep medtech industry knowledge.  Our professionals apply methods and inputs that are widely accepted in the business valuation profession.  Our industry specialists are well-versed in device life cycles, reimbursement dynamics, regulatory pathways, unit economics and competitive landscape considerations.  The result is a well-documented valuation work product supported by sound assumptions and reasonable conclusions that stand up to review by clients, founders, shareholders, boards, auditors, and regulators.

Valuing a pre-commercial medtech company usually requires consideration of multiple valuation methods and data sources.  For early-stage companies, we typically apply methods under the income approach such as (probability-adjusted) discounted cash flow.  A detailed cash flow build-up, reflecting addressable market size and unit economics, provides the best foundation for a robust valuation analysis.  Scenario and sensitivity modeling helps capture a range of potential outcomes given clinical and regulatory uncertainty.  When feasible, we also review benchmark analyses of comparable venture-backed transactions, industry data on regulatory and clinical success rates, and public market multiples.  Key drivers of value include progress toward regulatory milestones (FDA approval or CE marks), reimbursement strategy, competitive landscape, intellectual property, and management strength.

We typically complete valuation engagements within 3 to 6 weeks after receiving all necessary client data and documentation.  During the engagement, we schedule weekly or biweekly check-ins as needed to keep the project on track.  For clients with accelerated timetables, we will collaborate closely to meet shorter timelines without sacrificing analytical rigor.

Given the range of clients and valuation purposes we serve, there is no “typical” pricing model.  Factors that affect engagement scope and pricing include management’s data readiness, modeling complexity, overall entity structure, and purpose of the valuation.  Please contact us to discuss your specific situation and we will be happy to review pricing and other project elements in more detail.