Complex Securities Valuation
Eton's experienced valuation professionals provide valuation calculations and analysis regarding complex securities and other financial instruments for financial reporting, tax planning, and investment decision-making purposes. Proper fair value analysis requires the selection of the most appropriate valuation model for a given situation. Increased regulatory scrutiny on valuation methods makes the selection of a capable valuation services firm more critical than ever.
Eton's team of valuation specialists brings technical and quantitative expertise, market knowledge, and innovative but practical thinking that enable our clients to understand complicated issues, enabling defensible decisions based on quantitative analysis. Collectively, we have over 50 years of experience valuing a wide range of complex securities, including credit/debt instruments, derivatives, equity, and structured products.
We have assisted a broad array of clients with complex securities valuations, including public and private corporations, venture capital funds, private equity funds, hedge funds, and business development companies.
Our complex securities valuation team has performed the following types of valuation engagements in the past:
Valuation of Financial Instruments
Preferred stock and common stock in complex capital structures for public and privately-held companies
Founders' shares, warrants, convertible notes, and PIPE investments within special purpose acquisition companies (SPACs)
Equity derivatives (options, embedded options, warrants, total return swaps, etc.)
Interest rate derivatives (swaps with caps, floors, and collars, swaptions, forwards, bond options, etc.)
Commodity and energy derivatives
Foreign exchange derivatives (swaps, forwards, options, etc.)
Swaps (interest rate, cross currency, total return, etc.)
Structured products (ABS, ARS, CDOs, CLN, CLOs, CMBS, RMBS, structured notes, etc.)
Experienced Valuation Professionals
Eton's experienced team of valuation professionals is at the forefront of complex securities valuation. We have earned our reputation through thorough quantitative and qualitative analysis, and by taking significant care to properly document that rigorous analysis in our valuations. Eton's founders were practicing securities lawyers prior to starting Eton in 2010 and they brought the rigor of that world to Eton, pushing our valuation professionals to stay at the forefront of the latest developments in tax case law and other emerging topics. Our experience and rigor inform our selection of the proper sophisticated financial modeling techniques appropriate to each security. For example, securities with price-path dependency are typically best understood through Monte Carlo models. Whereas those with “early exercise” features are generally analyzed through the implementation of lattice models.
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