Case Study

Valuation of Portfolio Companies in Healthcare Private Equity Fund

April 16, 2019

Situation

A South Florida-based private equity fund investing in the healthcare industry required valuation services to estimate the fair value of their equity investments in various portfolio companies for financial reporting purposes and to comply with FASB ASC 820. The portfolio companies have a complex capital structure consisting of various equity classes. This analysis requires the valuation of the portfolio companies and application of appropriate valuation methodologies to allocate value and estimate the fair value of the fund’s investments.

Cherry Bekaert’s Guidance

The Valuation team’s experience and understanding of the portfolio companies’ industry, and relevant accounting and valuation guidance (i.e., FASB ASC 820, the AICPA’s guidance for valuation of portfolio companies) assisted the fund’s management by providing a supportable valuation analysis and report that facilitated its review with external auditors.

Result

The client engages Cherry Bekaert for its annual valuations based on the Firm’s diligent and thorough professional service, which provides the fund’s management a smoother audit and valuation review process with its external auditors.