Complex Security Valuations

In many situations, Securities issued in connection with share-based compensation or in a transaction involve derivatives that require a valuation for financial reporting or tax purposes

We are experts in developing customized derivative models and estimating supportable inputs for the complex instrument valuations.

Our services include:

• Derivatives Valuation

• Valuations for Equity Awards and Share-Based Compensation

Applied Valuations has in-depth experience with the full range of equity valuation techniques, including:

• Monte Carlo Simulation analysis which captures path dependency and correlation

• Binomial lattice models, customized to capture key features such as early exercise behavior

• More frequently used closed form solutions such as the Black-Scholes formula

Our professionals are skilled in determining which approach is most appropriate, and tailoring the analysis to the specific situation at hand.

We have experience of valuing Convertible Notes (Debt, Derivative, and Equity component breakup), Value Allocations of Privately Held companies with complex capitalization structure, Call/Put Options, Warrants, Total shareholder Return (‘TSR’) based Options, forward contracts, among other complex instruments.