Secondary Sale — How Not to Turn it Into a 409A Nightmare
A Secondary sale can have serious and far-reaching implications on the pricing of stock options due to 409A provisions. While the extent of the impact
Complex Securities Valuations
Leverage our quantitative & analytics expertise coupled with the market perspective to navigate challenges related to valuation of complex financial instruments.
Companies increasingly use innovative deal structures to optimize the risk reward metrics in their transactions leading to growing use of complex instruments like earn-outs, structured debt and equity-based derivatives, and several combinations thereof.
While these instruments have emerged as a powerful tool in corporate transaction strategy, the valuation of such complex securities pose a major challenge and often has significant implications. A wide fluctuation in value of such instruments can have significant impact on the Company’s future earnings
Aranca’s complex securities valuation experts use sophisticated models and advanced analytics to help clients understand the implications at pre-transaction decision making stage as well as to meet financial reporting requirements without any audit hassles. Here are some select situations where clients use our services:
- Funding rounds with complex term sheets involving, preferred stock, common stock along with other equity derivatives (options, warrants, etc.)
- Funding rounds involving a combination of equity, debt, milestone payments, future royalty payments across multiple tranches, etc. (particularly life-Sciences companies)
What Our Clients Say
Knowledge Library
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Dealing with Inorganic Growth in Valuations Based on Market Approach
It is a challenge to apply the market-based approach while valuing companies showcasing high inorganic growth or participating in an acquisitive industry. Analysts should be
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COVID-19 Crisis, Stock Options & 409A Valuation: An opportunity to realign the sharing of long-term value?
The COVID-19 pandemic continues to send financial markets globally in a tailspin. The economic slowdown will undoubtedly affect the technology startup and venture capital ecosystem.
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Are Risk-Free Bonds Really “Risk-free”?: The Case of Silicon Valley Bank
Silicon Valley Bank (SVB), one of the leading banks in the US and regarded as the banker for startups, was shut down on March 10, 2023, by
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Downward Spiral of Tech Industry Valuation
The Indian tech industry has always been a strong player with consistent growth, but 2022 was a challenging year, and many companies saw a fall in
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Contingent Consideration (Earnouts): A Good Approach to Make Deals
Earnouts are a smart way to make deals. They are beneficial to sellers as they get a payoff with the successful execution of the deal,
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Fintech Decoded: 1H22
Fintech deal activity in 1H22 slowed down due to the macroeconomic headwinds, with subsectors such as Blockchain/Crypto gaining importance over Payments+ owing to increased
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HealthTech Decoded 1H22
HealthTech funding cools down in 1H22, while the number of investments reached new heights as new subsectors with innovative solutions emerged. Investment momentum in connected
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HealthTech Decoded: 2021
HealthTech deal activity reached new heights in 2021 as new subsectors with innovative solutions emerged. Connected care maintained its position as a hotbed of investment activity,
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A decade later, most Indian internet companies are as far from an IPO as when they started off
“The barriers to entry in several internet businesses are really low,” Aranca’s Mantena said. “Any competitor can come at any time and start the same bu
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Oman to reap revenues from new VAT system
As GCC countries start looking at the real impact of the coming Value Added Tax (VAT), planned for the beginning of 2018, the country of Oman
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Modi’s surprise move on rupee notes has come as a pleasant surprise indeed for Indian internet startups
The Narendra Modi government’s decision to replace the Rs500 and Rs1,000 denomination notes with new ones has done in two days what Indian internet s