| Valuation of Equity Securities of Privately Held Companies
Program Type: Recorded Webinar (Audio, PPT Presentation)
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: One (1) hour
Fields of Study: Finance
Shipping Weight: 0lbs. 0oz.
This webinar will provide an overview of valuing equity securities, where and how valuing equity securities fits into your valuation practice, and how to correctly apply the American Institute of Certified Public Accountants' (AICPA) Practice Guide on valuing equity securities. This webinar will also cover the top three mistakes made when valuing equity securities.
Components of equity securities, key value drivers, and acceptable models, which can address the valuation of these assets, will all be discussed. Consideration will be given to the uses of valuations of equity securities of privately held companies with complex capital structures, performed and audited for common share fair value for pricing of stock options (IRC 409A), portfolio valuation (ASC 820), M&A, pre-IPO considerations, litigation support, investment in real estate with preferred returns, and simulations of next round financing or exit strategies. Certain items of the AICPA Practice Aid will be presented, including current thinking on allocation models.
The discussion will cover these and other important matters:
- Understanding a term sheet and different rights associated to preferred stock
- Valuation approaches
- How to select the right valuation method for valuing equity securities
- Methods for valuing equity securities
- Discount for Lack of Marketability
- Common mistakes
- How to expand your valuation practice to offer these services (if you are not currently offering these services)
The program will include examples and a practical case, illustrating issues often encountered in a professional practice, as well as helpful solutions.
A case study will be done using Algovalue software.
After completing this webinar, attendees will be able to:
- Formulate the fundamental concepts, theory, and techniques of equity security valuation
- Decipher complex capital structures in term sheets prepared by attorneys
- Establish the valuation methodologies for equity securities as required by the AICPA
- Define the key drivers of the Option Pricing Method
- Differentiate between various practical valuation approaches
- Determine what is necessary to begin offering these services as a valuation professional
Who Should Attend
Mr. Raphael Meyara is the CEO and co-founder of AlgoValue, where he developed a software solution for the valuation of preferred stock, common stock, stock options, and other equity securities of privately held companies. Before joining AlgoValue, Mr. Meyara was a project manager at PricewaterhouseCoopers in the Valuation Department for several years. He holds an MBA in finance and strategic management from the Universite Paris Dauphine and a post-MBA degree from the Tel-Aviv University.
Mr. Gary Massey is the Chief Marketing Officer of AlgoValue. He worked as a CPA for over 20 years, much of it with the Big Four global accounting firms, advising clients of all sizes on a host of complex tax, accounting, and financial matters. Mr. Massey brings his deep advisory experience to AlgoValue, offering clients a unique understanding of their financial needs and key business requirements. He is licensed as a CPA in three states and holds an MBA in accounting and a MS in taxation from Fordham University and a BA in history from Brandeis University.