Similar to cheap stock and complex valuation assignments, volatility opinion valuations are a core service of NAV.  These opinions are often performed in conjunction with either a valuation of options or warrants since volatility is a key input in these complex asset assignments. The issuance of equity securities (stock, restricted stock, options, or warrants) triggers a compensation expense on the income statement, and all expenses in the immediate time frame generally receive a detailed review by auditors and their valuation specialists.

What is At Stake?

ASC 718 valuations have far-reaching implications. For starters, option valuation directly affects the option compensation expense that flows through through the income statement. This total can be substantial for a technology or healthcare company utilizing employee stock options and incentive options to retain and attract talent. The nature of ASC 718 assignment warrants a valuation expert with both deep M&A experience and early-stage valuation expertise. Both areas are well-suited to NAV's strengths.

Our team deploys the latest models to 1) size-adjust and 2) leverage-adjust volatility to ensure a rigorous volatility analysis that conforms with the AICPA's latest Equity Compensation Guide. The latter is often referred to as the "Cheap Stock Guide".

How We Assist Clients

NAV's team deliver cost-effective and supportable valuation services such as internal valuation support, summary valuation report, and detailed valuation reports. We also offer clients the flexibility to select their reporting option and shift service levels upward or downward during the engagement process. 

How We Are Transparent

We perform our services on a flat-fee or hourly basis with leading attorneys, alternative investment funds, CFOs, CPAs, and other C-suite corporate executives. We strongly feel engagement scope and fee ranges should be communicated effectively and efficiently.

We accordingly serve clients in stages, and we encourage clients to take a methodical, calculated approach to deciding which professional offerings are necessary or optional. 

Our first service stage is dubbed the NAV Situation Scan (TM). The Situation Scan helps both our clients and our teams diagnose the services necessary for fulfilment of client objectives. We then communicate the results of the Situation Scan to derive a suggested road-map. The NAV team next proposes a time frame for delivery of service milestones. We are inherently flexible, and our Situation Scans outline a proposed plan of action and not a mandatory obligation. We have found clients cherish this "ramp-up or ramp-down" flexibility that can be implemented at any time.