BV545 Beyond the OPM: Advanced Strategies for Equity Allocation

Webinar Description

While a workhorse model in the toolkit of valuation professionals, the OPM cannot handle all areas of equity allocation. This webinar will start with an explanation of the OPM and it's use cases. Following this, we will move onto several unique situations where the model breaks down. For example, we will discuss how to deal with non-linear payout structures, external factors such as a drug approval,  and transitions to a public company capital structure. We will use real world examples based on production models of each.

Learning Outcomes

Upon webinar completion, the participant will be able to:

• Implement the OPM to allocate equity amongst privately held company securities; 
• Identify unique circumstances when a different valuation approach might be more suitable for the valuation of equity instruments in a private company;  
• Explain (to various stakeholders) the key assumptions and methodology behind the Option Pricing Model; and 
• Introduce alternative solutions for the valuation of equity instruments in a private company when the Option Pricing Model is not a viable solution.

Course Audience

Valuation Practitioners, Companies, Auditors, or anyone who is involved with the valuation of equity instruments for private companies.

Instructor Information

Josh Schaeffer, PhD. | Equity Methods

Josh Schaeffer is a managing director and practice leader for Equity Methods’ valuation practice. He leads the delivery of valuation and advisory services related to complex securities. Josh works closely with finance executives across a broad array of public and private firms. His clients range from early-stage, pre-IPO upstarts to some of the largest public companies in the world. He’s a frequent presenter for the National Association of Stock Plan Professionals, the American Society of Appraisers, and other industry organizations. Prior to joining Equity Methods, Josh worked with Deloitte Financial Advisory Services and Cornerstone Research. In these roles, he focused on valuations and statistical analyses of businesses and investments for financial reporting, tax, consulting, litigation, and arbitration purposes.

Nikhil Guruji | Equity Methods

Nikhil Guruji is a Senior Consultant and brings a diverse background in quantitative finance, mathematics, and programming to the Equity Methods Valuation Services Group. Nikhil leads the valuation of various complex financial instruments such as warrants, structured products, convertible securities, contingent considerations, and interest rate-related derivative securities, along with various equity compensation instruments for ASC 718 compliance.  Nikhil holds a Masters in Financial Engineering from the University of California, Los Angeles – Anderson School of Management, and a Bachelors in Electrical Engineering from National Institute of Technology, Warangal, India. He is a Certified Financial Risk Manager (FRM).

Continuing Education

Review of this session recording will award 2.4 CE hour(s). 

CPE credit is not awarded for this pre-recorded offering.