The value of a pharma business
What is the real value of your pharma company? What is your pharma business worth? What multiples are used in the pharma industry? What does a buyer appreciate in your company?
These are questions that could interest you as a seller of a pharmaceutical company. Of course, you want to maximize the company’s value, and have a good starting point in the discussions with the buyer, but how can you find out how much you can ask for a share in your business?
Principles of valuation of a pharma company
The valuation of a pharma company is a very important question that every pharma company owner might be interested in. There is the technical part as well as the art of a business valuation. There are a lot of factors that come into consideration during the valuation of a pharma company.
There are multiple valuation methods currently used in the M&A market. The DCF method (discounted cash-flow method) is sometimes used. More often, the way to value a company is to take industry multiples (mostly EBITDA) and use these on the company’s financials to come up with an estimated valuation. This is the most common method. Visit valuation methods page for your company for details about the main valuation methods.
The valuation depends significantly on subindustry. You will get different valuation multiple and result for pharma manufacturer, distributor, or CMO/CRO company.
Try our practical on-line pharma company valuation tool
We have developed an online tool, that can give you a basic idea of how much your pharma company is worth. If you want to get a preliminary-level indication of the value of your business, please fill out the model below. You will need just the basic financials from the last two years.
As a result, you will get a rough indication of the enterprise value for your company.
Information about the value of your pharma company
Feel free to contact us if you have any questions concerning the value of your pharma company. A competent team of appraisers is ready to assist you. We have an pharma industry expert, who will assist you with the company valuation. We are able to get a valuation for any pharma subindustry:
- Valuation of a pharma manufacturer
- Valuation of a pharma distributor
- Valuation of a CRO company (contract research organisation)
- Valuation of a CMO company (contract manufacturing organisation)
Valuations are a particularly important step in the M&A process. It is wise to gain as much knowledge about the process to have a better overview. For this reason, we advise you to read one of the pages below:
The process of selling a business
The process of buying a business
We are here to help you with setting a market value for your pharmaceutical company.
There is no guarantee that you will find a buyer for this valuation. However, we believe that for every company there is a buyer if the price is right.