Complex Securities Valuation

Short Description: 
VRC assists clients in understanding and valuing complex securities, financial derivatives, Level 3 for financial reporting, tax and regulatory compliance, transaction support and corporate strategy.

The number and complexity of private and otherwise illiquid securities has led to increased investor and regulatory scrutiny regarding the valuation of complex securities. These securities are rich in economic features and are closely linked to an equity security, a debt security, or more of a hybrid instrument with elements of each type.

These hard to value securities typically contain options and market conditions such as return multiples or thresholds, and specific IRR and price performance targets, that alter the cash flows over the life of the security. These securities often arise in connection with corporate transactions, external financings, capital raises, and the implementation of an incentive compensation plan or award.

VRC’s Complex Instruments Group work with asset managers, private equity funds, hedge funds, public and private pension plans, business development companies, and private and public corporations in the understanding and valuation of all varieties of hard to value and complex financial instruments and derivatives.

Our team of seasoned professionals is unique because of their strong quantitative finance and modeling expertise. Utilizing sophisticated financial engineering techniques to value complex securities, our professionals capture the richness of the security, bringing in the proper level of complexity to the analysis.

Our area of focus includes:

  • Equity compensation awards
  • Early- or development stage companies
  • Financial instruments and arrangements
  • Financial reporting requirements for share based payments (ASC 718) and derivatives and hedging activities (ASC 815)
  • Tax scenarios involving nonqualified deferred compensation plans (IRC Section 409A)

Interested in a full, virtual introduction to VRC’s Complex Instruments Group? Learn about the depth of our knowledge, capabilities, modeling approach, credentials, case studies and more. Download the brochure today!

To learn more about how we can help your company with an independent objective, defensible complex security valuation, please contact Anthony Law or Robert Barnett.