Demystifying Valuations for Venture Backed Companies

July 23, 2010 at 3:13 pm Leave a comment

There are many occasions for a valuation in the life of a start-up company: preparing for the sought-after financing from a premier VC, the highly anticipated sale to a strategic partner at a hefty premium, or even pricing the initial public offering.

The occasion of the annual 409A/123R (short for Internal Revenue Code Section 409A and Accounting Standards Code 718/Statement of Financial Accounting Standards 123R, Share-Based Payment) valuation exercise is likely a less coveted experience. Often seen as a necessary evil, it is full of rules and methodologies that were developed with the aspiration of transparency, but are often less approachable for the typical user. Similarly, purchase price allocation studies (i.e. valuations of intangible assets for ASC 805/SFAS141R, Business Combinations) come with a surprising complexity even for small acquisitions.

In order to shed some light into the world of start-up valuations, The Brenner Group is hosting a seminar for executive management, financial professionals, corporate counsel, and investors to prepare for the valuation process, understand valuation reports, and assess the impact of preferred equity terms on common stock valuation.

Topics Include:

• Taxman v. Auditor:

Commonalities and differences between IRC 409A and SFAS 123R (ASC718), as well as fair market value under IRS regulations and fair value under accounting standards

• How it’s done:

Overview of the valuation process, the common methods for enterprise valuations, and the subsequent allocation between different classes of securities, including the Current Value Method, the Option Pricing Method, and the Probability Weighted Expected Return Method

• What does it mean to me:

Impact of different terms of preferred equity on the valuation of common shares

• Accounting for Acquisitions:

Overview of the assumptions and issues regarding valuation of intangible assets intangible assets in a purchase price allocation for SFAS 141R (ASC 805)

Thursday, July 29, 2010 8:00am Breakfast & Registration 8:30 – 10:00am Session

For in person attendance please register by July 27, 2010 to rsvp@thebrennergroup.com

For webinar register by July 27, 2020 via GoToMeeting for Demystifying Valuations for Venture Backed Companies

For more information: Demystifying Valuations for Venture Backed Companies

Gunther Hofmann is a Vice President of The Brenner Group and has done extensive work in valuations, M&A, venture capital, and corporate finance with significant international experience in small firms as well as global corporations. Gunther earned a Masters Degree in Electrical Engineering and Business Administration from Darmstadt University of Technology in Germany, and was a Visiting Scholar at UC Berkeley. He is a holder of the Chartered Financial Analyst designation, and a member of the National Association of Certified Valuation Analysts. Gunther is Chairman of the Software/IT Industry Group of the German American Business Association (GABA).


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Original post permalink:

https://banner.thebrennergroup.com/2010/07/23/demystifying-valuations-for-venture-backed-companies

Entry filed under: Valuations.

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