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Multidisciplinary Fund Valuation and Financial Advisory Firm Transparently Serving the Full Range of Attorneys, Asset Managers, CFOs, and CPAs TM

NAV Valuation & Advisory LLC - Alternative Investment Valuation & Financial Advisory Firm

Alternative Investment Valuation and Financial Advisory Firm Transparently Serving the Full Range of Asset Managers, Attorneys, CFOs, and CPAsTM

View the 1-minute Firm Overview Introduction and Recent TV Interviews

Justin Kuczmarski,
MBA, CPA, CVA, ABV, CEIV, CIRA
President

Derivative Valuation - Options and Warrants

Many security issuances and M&A transactions involve derivatives that require a valuation for financial reporting or tax purposes.

 

In today's robust M&A environment, it is not uncommon for either a transaction or issuance of securities to trigger a valuation requirement. Whether it is the financial reporting requirements of ASC 718 for equity compensation or valuation support for tax purposes, NAV's team is well-versed in valuing complex securities such as warrants, options, and other derivatives.

 

Our team leverages advanced techniques such as binomial tree lattice modeling, scenario simulation, or Monte Carlo simulations. We leverage robust resources and our transactional background for the following derivative valuation services:

 

  • Deferred compensation arrangements

 

  • Derivatives embedded for ASC 815 stipulate how a derivative recorded on the balance sheet requires a fair value as an asset or liability.

 

  • Fair value of debt, particularly for a convertible note issuance to conform to ASC 470. ASC 470-20 guides the accounting for instruments with embedded equity conversion features. ASC 470-20 also addresses deals tied to such instruments.

 

  • Preferred equity

 

  • Warrants

 

Our approach is tailored and customized to the fact pattern of our clients. We nonetheless are experts in applying the latest techniques for documenting and conforming with fair value accounting. Please also see the fair value primer below.