Having received a stock-for-stock acquisition offer, a cryostorage technology company offering digital and automated identification, tracking, and management of fertility-related samples wanted to:
1
Validate the acquiring company’s financial position and deal value
2
Identify risks to valuation, working capital, and equity allocation
3
Strengthen negotiating position with data-driven insights
Approach
Monomoy deployed resources from its Decision Support practice to:
- Conduct a comprehensive assessment of the acquiring company through document review and stakeholder interviews, including the audit firm and service providers
- Evaluate historical and projected financial performance, quality of earnings, and debt-like items
- Identify and quantify areas impacting valuation, equity allocation, and working capital to inform negotiations
Results
The client received materially improved acquisition terms based on valuation adjustments identified by the Monomoy team. The two companies have since announced their business combination to form one of the leading cryostorage firms in the industry.