Valuation of Equity Securities in Complex Capital Structures

Most venture capital-backed and early-stage enterprises are financed by a combination of equity securities with unique rights, privileges, and preferences, such as common and successive rounds of preferred stock, each of which has rights that likely differ from those of other series. The valuation of any security in in the capital structure requires a precise determination of how the enterprise value as a whole is distributed among the various equity claims. Our valuation specialists have performed hundreds of such valuations for tax and financial reporting purposes that have been audited and accepted by the IRS and largest accounting firms in the world.