Valuation Analysis Of Biotechnology Start-ups

With the continuous development of the China's economy,the living standards of residents have increased dramatically,the people's attention to medical health is also increasing.China's health industry has gradually begun to enter the period of rapid development,the value of investment has already appeared,and there is still a big market space in the future.In recent years,the number and scale of Private Equity Institutions in China have been growing rapidly,and Private Equity Institutions are also very active in the investment in medical health field.The main content of this paper is to introduce the theory of enterprise value evaluation and the industry of IVD(In Vitro Diagnosis),and to study how to use different methods of value evaluation to make a reasonable valuation of the potential value of IVD start-ups.When evaluating an investment project,Private Equity funds need to analyze the future development prospects,and choose appropriate valuation methods according to the development phase of the enterprises,the structure of the assets&the actual operating conditions,and then analyze the reasonableness of the company's valuation.The significance of this paper is from the perspective of Private Equity investment,to analyze the value of start-ups of IVD,to evaluate the impact of various valuation methods,and provide a reference for the Private Equity investment funds to evaluate the value of start-ups.The main conclusions of this paper are:Private Equity investment of IVD projects,there is a valuation premium because of the rapid growth of IVD industry,and the value obtained by market method is higher.The DCF method is a hypothesis prediction for the future cash flow of enterprises,and it can be used as a reference.The risk income method is to predict the future profit level of the enterprise and the future P/E ratio of the industry,and can obtain the reference interval by choosing reasonable hypothesis parameters.In the actual investment,we should combine various valuation methods to study the target enterprises,and finally get appropriate valuation.