Pay vs. Performance Disclosure Requirements

Unlock the complexities of the SEC’s Pay vs. Performance Disclosures to seamlessly navigate the regulatory landscape and set the stage for a confident proxy season.

Key Points in Valuing Profits Interests

Profits Interests are valued as options, and when estimating their fair value consider the total equity framework, including vesting interests.

Pay vs. Performance Disclosure Requirements: Expected term of option grants, simple or not?

Addressing the challenge of developing and supporting the expected term used in the Black-Sholes Option Pricing Model to determine fair value of grants to PEOs and NEOs.

SEC Requires Pay-Versus-Performance Fair Value Disclosures

Public company filer disclosures must provide added color on the full scope of executive compensation packages, changes in fair value of equity awards issued principal and named executive officers.

Charles Chen

Mr. Chen specializes in the valuation of stock compensation, options, derivatives, and complex securities. He has extensive experience performing Monte Carlo simulation to estimate the…

Kevin Gawron

Mr. Gawron is part of the portfolio valuation group specializing in valuations of privately-held debt securities, equity securities, and business enterprises for financial reporting purposes.…

Cheryl Cheng

Ms. Cheng specializes in portfolio valuation of private assets including credit, equity, and infrastructure. She has performed valuations along the capital structure from credit to equity,…

Akshay Arora

Mr. Arora specializes in the valuation of stock compensation, options, derivatives, and complex securities. Along with providing valuation services, Akshay Arora also has extensive experience…

Oleg Pesterev

Mr. Pesterev specializes in valuing complex securities including options, warrants, preferred stocks, convertible bonds, debt, contingent considerations, and commodity instruments for financial reporting and tax…

Magdalena Keller

Ms. Keller specializes in the valuation of illiquid securities, including privately-held equity securities, fixed income securities, various derivatives and structured products, for hedge funds, private…

Huan Shu

Ms. Shu specializes in complex securities valuation for financial reporting and tax purposes. She has extensive valuation expertise in complex financial instruments, including 409A valuation,…

Why VRC?

Why do public companies, private equity firms, and asset managers rely on VRC for their critical valuation and advisory service requirements?

Valuing Venture Debt vs. Debt Instruments

What makes valuing venture debt investments unique compared to debt investments in more established companies?

Join the VRC Team

Watch and learn why VRC is a great place to work!

Tom Gottfried

Mr. Gottfried specializes in business enterprise, credit/debt instruments, equity, intangible asset and portfolio valuations. He has over 15 years of experience in planning, facilitating and…

Subu Parmeswaran

Mr. Parmeswaran is part of portfolio valuation practice. He specializes in the valuation of complex securities. Prior to VRC, he was a director at CBIZ…

Shri Shetty

Ms. Shetty specializes in valuation of share-based compensation, options, derivatives, and complex securities. Prior to VRC, Ms. Shetty was an intern at Merrill Lynch where…

NFL Team Options: Value and Risk

The principles developed in valuing common stock options can provide insight into what sports contracts are worth and how they affect risk.

Garrett Sullivan

Mr. Sullivan is part of the portfolio valuation group specializing in valuations of business enterprises and illiquid privately-held debt and equity securities for tax and…

Leon Li

Mr. Li specializes in valuing complex securities including options, warrants, fixed income and credit derivatives, structured products and other derivatives. Prior to joining VRC, Mr.…

Sarit Rapport

Sarit Rapport is part of the portfolio valuation group. She has over 20 years of valuation experience performing business valuations, valuations of complex securities, valuations…

Pablo Alfaro

Mr. Alfaro specializes in valuing complex securities including options, warrants, convertible bonds, and preferred and common stock in privately-held companies. He has extensive experience valuing…

Dwight Grant

In his role as Senior Advisor to VRC, Mr. Grant advises VRC and clients on the valuations of financial instruments, derivatives, and complex securities related…

Oil & Gas

VRC provided a required valuation of tangible and intangible assets for a Master Limited Partnership (MLP) client in support of a purchase price allocation. There were no detailed fixed asset records; VRC needed to overcome significant data limitations.

Financial Sponsor: Hedge Fund

A hedge fund client held convertible note in a company that restructured outstanding debt. As part of restructure, the note was exchanged for two separate Term Loans.

Devon Martineaux

Mr. Martineaux is a part of VRC’s Portfolio Valuation Practice and specializes in business enterprise and illiquid securities valuation to hedge funds, private equity funds…

Convertible Notes Valuation

The valuation challenge with a hybrid security is to consider both the equity and debt components in a combined framework – this challenge is not without its tradeoffs.

Mercedes Falcon

Ms. Falcon has extensive experience in business valuation for financial and tax purposes, project management and corporate finance. Prior to joining Valuation Research, Ms. Falcon…

Accounting and Valuation Conference Tackles Critical Issues for Credit Funds

Ahead of an uncertain 2018, senior VRC professionals provided their insights regarding trends in accounting, valuation, taxes and other industry practices.

Michael Park

Michael Park is a part of the portfolio valuation group specializing in the valuation of illiquid securities, including privately-held equity securities, fixed income securities, various…

Technology

A PE-sponsored cloud based provider granted equity compensation incentives to executives. To comply with financial reporting requirements of Accounting Standards Codification 718 (ASC 718), the provider engaged VRC to determine the fair value of the issued units.

Consumer Products

A brand valuation that estimated the fair value of intangible assets acquired in a business combination was needed by a personal care product company for the sale of its branded and private label products.

Financial Sponsor: Private Equity

A technology company was purchased by large private equity investor. With the purchase price set, the new entity was capitalized with debt and three different types of equity securities.

Andrew Reddington

Mr. Reddington specializes in the valuation of businesses, securities and intangible assets for financial reporting, tax and litigation purposes. Prior to joining VRC, Mr. Reddington…

Francis Mainville

Mr. Mainville specializes in the valuation of complex securities such as options, warrants, preferred and common stock in privately-held companies, management incentive plans (including those…

Ryan MacLean

Mr. MacLean is a part of the portfolio valuation group specializing in valuations of privately-held debt securities, equity securities, CLO equity securities, and business enterprises…

Anthony Law

Mr. Law specializes in the valuation of business enterprises, stock options, derivative securities, and intangible assets as well as fairness and solvency opinions for corporate…

Jason DeFazio

Jason DeFazio is a part of the portfolio valuation group specializing in valuations of privately-held illiquid securities throughout the capital structure (both debt and equity…

Complex Securities

Valuations for complex instruments such as options, warrants, convertible bonds, contingent consideration, preferred & common stock

Manufacturing

An industrial property consisting of various manufacturing machinery & equipment was a candidate for an ad valorem tax reduction.

Amir Alerasoul

Mr. Alerasoul specializes in the valuation of stock compensation, options, derivatives and complex securities. Prior to joining VRC, Mr. Alerasoul held the position of valuation…

Pharmaceuticals

In order to comply with Accounting Standards Codification 815 (ASC 815), an early stage pharmaceutical company asked VRC to analyze the entire convertible callable note and determine the fair market value of each of the embedded derivatives.

Five Misperceptions: Credit Valuation Adjustments in Swap Valuations

An overview for corporate accounting professionals of Credit Valuation Adjustments and five common misperceptions about them.

Technology

A private equity sponsored cloud based provider of manager content, enterprise lending services granted certain management incentive units to participating executives, as compensation to incentivize management performance.

All in the Family (Office): Valuation Needs for Direct Private Equity Investments

Family offices making private equity investments need to be aware of valuation issues related investments in complex structures.

Optimal Number of Trials for Monte Carlo Simulation

A Monte Carlo Simulation is a technique is often used to find fair value for financial instruments for which probabilistic distributions are unknown.

Equity Incentive Awards Based on Total Shareholder Return

Share-based payments have led to boardroom creativity around an equity incentive award’s design, prompting developments in valuation approaches.

Understanding Convertible Debt Valuation

Companies seeking lower interest costs particularly as firms refinance maturing debt, convertible notes offer alternatives to straight debt securities. However, they come with complex valuation requirements.

Techniques for Valuing Carried Interest

In receiving value only if a threshold is met, carried interests have an asymmetric payoff similar to a stock option.

Financial Sponsor: Hedge Fund

​A shareholder of a closely-held hedge fund was not receiving the appropriate level of compensation per agreement with the controlling interest shareholder.

Common Valuation Issues With Illiquid Securities

Nuanced securities typically contain options and market conditions that alter cash flows over the life of the security and raise valuation challenges.

Healthcare

Property taxes were levied on only real property portion of a hospital, key to analysis was separating the value of the business ops from that of real property.

Brands: Food & Beverage

A leading manufacturer of branded food products engaged VRC to estimate the fair value of certain intangible assets acquired in a business combination.

Understanding the Valuation of Profits Interests in Private Equity Transactions

To value profits interests, the economics of the equity capital must be clearly incorporated into the valuation.

Fair Value Considerations: Accounting for Embedded Derivatives

Embedded derivatives require valuation at issuance and revaluation at all subsequent quarters with changes in value reported in earnings (non-cash).

Backsolve and Hybrid Approaches for Valuing Complex Equity Capital Structures

The backsolve method derives from a timely transaction in a private company’s equity.

Chemical

A leading international producer of nitrogen products acquires a nitrogen manufacturing company requiring a valuation for allocation of purchase price according to ASC 805.

Telecommunication

We were retained by a leading provider of wireless messaging and information services to provide various valuation services for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Professional Services

VRC was asked by the attorneys representing the seller to provide multiple common stock valuations on a retrospective basis that would withstand a Big 4 audit review under tight deal closing deadlines.