On behalf of a private equity (PE) investor, an Alacrita partner was retained as an observer on the board of a regenerative medicine/advanced wound healing company where he contributed to BoD discussions based on his industry expertise and strategic understanding gained through a long association with companies in similar stages of development. He also drew upon the experience of other consultants in Alacrita which he was able bring to the table to facilitate productive discussion. During the course of this long term assignment, Alacrita was also asked to:
- Develop a valuation of the company based on analysis of comparables (albeit very few relevant examples available), a review of a discounted cash flow (DCF) analysis and general market valuations for life science companies outside the field but at a similar stage of corporate evolution. This required specialist expertise of the company’s technology and a deep understanding of valuation as applied to a company at this stage of development;
- Update Alacrita’s original due diligence report dating 30 months previously, assessing the degree to which the new management team had achieved the planned strategic and operational transformation of the company. An objective and accurate assessment was made possible because the Alacrita partner leading this project had a long track record in industry in senior roles and understood the challenges and realities of managing a company to deliver results. This was presented to the PE Investment Committee as a core part of its exit decision;
- Identify and assess corporate milestones over the coming 12-24 months, highlighting those that could underpin value inflection points and others of strategic significance. Once again, this activity relied on the Alacrita partner having real industry experience in senior management roles.