Complex capital structures are becoming more and more prevalent in the private sector, and thus, it is imperative to know this component of valuation to stay ahead of the curve. The following is a synopsis of the topics that will be addressed:
Users of complex capital structures
Preferred vs. common vs. debt valuation nuances
Typical Preferred features
Economic vs. noneconomic
Four methods of Allocation:
Probability Weighted Expected Return Method (PWERM)
Simplified Scenario (fully-diluted)
Option Pricing Model (OPM)
Equity vs. Enterprise inputs
Current Value Method (CVM)
Hybrid Method (PWERM/OPM)
How to select the right method?
Rank of security
Cost/Benefit of the approach – is it practical for the client?
Why was the structure chosen?
Company/Industry specific components
Presenters: Gregg Hamilton-Piercy, CFA, ASA & Tom Hamilton-Piercy, CFA – MFA Global, Montreal
The information, analysis and opinions expressed in the webinars, podcasts and/or congress presentations are solely those of the presenter/author, are not reviewed by the Institute as to content or accuracy, and are not endorsed by CBV Institute or any of its Members.
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