Valuation Of Medical Devices Unlisted Enterprises

The medical device industry is a sub-sector of the pharmaceutical industry.Although it started and developed late,it has developed rapidly in recent years.With the introduction of relevant policies by the state,the number of domestic high-growth medical device listed companies with core technologies has gradually increased at a turning point in the localization and export substitution of medical devices.It plays an obvious leading role in the industry.At the same time,horizontal mergers and acquisitions in the industry have also become the main channel for enterprises in the industry to break through the ceiling.Therefore,the future development of the industry will involve a large number activities of company's IPO,merger and reorganization.In this process,the estimation of enterprise value is of great significance for identifying the enterprise value of medical devices,and it is also an urgent problem to be solved in identifying the enterprise value in the industry.Therefore,it is necessary to conduct an in-depth study on the valuation of the medical device industry.While the proposal of methods suitable for the valuation of the medical device industry is also necessary.However,the research on the valuation of the medical device industry is still in the exploratory stage,especially the application of market method in the valuation of the medical device industry is very few,and the existing research on the valuation of the medical device industry mostly stays at the level of large industries,but there are great differences between the medical device industry and other sub-industries of the pharmaceutical industry,so there is some research space for the application of the market method and this sub-industries,the medical device industry.This thesis selects Getein Biotech Corporation as representatives of non-listed companies in the medical device industry to explore the application of market method and analysis of cases.At present,the problems that subjective selection of comparable companies and value multipliers and inaccurate correction of value multipliers are existed in the market method of the enterprise valuation.Firstly,in this thesis,thoughts are proposed to construct characteristic indexes that affect the value of medical device enterprises from the perspective of enterprise competition and in combination with the characteristics of the medical device industry.It uses the characteristic indexes to screen and weight comparable companies through entropy method and fuzzy mathematics method.Secondly,the applicability of the value multiplier is analyzed,and the value multiplier suitable for medical device enterprises is selected.Finally,in the aspect of value multiplier correction,since the comprehensive differences of enterprises could be reflected by stock prices,the correlation between stock prices and characteristic indexes is analyzed,the indexes closely related to stock prices are analyzed by principal component analysis,the evaluation function is constructed with variance contribution rate as the weight,and the value multiplier is corrected with the ratio of function values of comparable companies and evaluated companies.This thesis puts forward some suggestions for improvement on several key issues in the application of market method,providing method reference for the application of market method in the valuation of medical device industry.The results show that the entropy method is used to weight the selection criteria of comparable companies,which can effectively help assessment agencies to judge the applicability of the market method and determine the weighting of comparable companies.In addition,it is found that different value multipliers have different adaptability in the medical device industry.In the market method valuation of the medical device industry,it is necessary to comprehensively consider both the industry and the enterprise,select a more suitable value multiplier,and use principal component analysis to establish a multiplier correction function to correct the value multiplier,which has certain application value in the market method valuation of the medical device industry.This thesis has also carried on the medical equipment enterprise valuation research,with the usage of the market method valuation and has obtained the reasonable valuation result.It is estimated that the value in this thesis could provide reference for the companies regarding of the IPO,the merger reorganization,the value investment and other activities in the medical device industry.