Valuing a Minority Shareholder’s Common Stock Amid Capital Restructurings
Valuing investments in private companies requires a flexible approach.
Valuing investments in private companies requires a flexible approach.
The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.
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.
In the original Practice Aid, there was no mention of the back-solve approach. Since then the technique has come into widespread use.