Valuation of Contingent Consideration: A Fair Value Perspective
Learn about contingent consideration from the perspective of a private equity (PE) or venture capital (VC) fund that engages in a sale transaction of a portfolio company investment under FASB ASC 820, Fair Value Measurement.
NASBA Field of Study
Understanding key features of common types of earnouts
Contingent consideration in the form of earnouts may represent a very significant component in the total purchase price of a portfolio company buy/sell transaction.
In this webcast, you'll learn:
- Types of earnouts
- Earnout valuation through practical examples of scenario analysis, option pricing models and Monte Carlo simulation
- How payoff structure, path-dependency, correlation among earnout drivers, caps and floors may affect valuation
- Overview of Earnout and Clawback Valuation under ASC 820
- Types of earnouts
- Scenario analysis in earnout valuation
- Option pricing models in earnout valuation
- Monte Carlo simulation in earnout valuation
- Identify key contractual terms that affect the valuation of Contingent Consideration in PE/VC Transactions
- Recognize techniques such as option pricing modelling, Monte Carlo simulation and scenario analysis to the valuation of earnouts and clawbacks
- Recall valuation policies and approaches that are consistent with U.S. GAAP for Contingent Consideration
Who will benefit
- CPAs, accountants and finance professionals
- Finance department personnel at private and public companies
- VC/PE Fund Management
- Valuation Analysts
Group ordering for your team
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