Companies today deal with complex fair value issues on a regular basis. By providing independent valuations, along with strong supportive conclusions, Albeck is able to assist companies tackle the relevant issues properly and in a cost-efficient manner.
The complexity, diversity, and proliferation of financial instruments in recent years have intensified the demand for overall valuation services. Albeck provides valuation, quantitative modeling, and related consultative services for various types of financial instruments, including financial derivatives and structured products, as well as commodities and other investment vehicles. Services include analyses and assessments, as well as assistance in developing internal capabilities, models, systems, and processes.
The following is a list of services that Albeck typically provides to its clients:
1. SEC Compliance Services
a. Derivative Instruments—ASC Topic 815
b. Goodwill and Asset Impairment—ASC Topics 805, 350 and 360
c. Share-Based Compensation—ASC Topic 718
d. Sabbatical Valuations—ASC Topic 710
2. Private Equity Valuations
3. Merger (Accretion/Dilution) Analysis
4. Leveraged Buyout Analysis
5. Comparable Transaction Analysis
One of the most common issues facing companies today is how to properly account for share-based compensation in accordance with ASC Topic 718 [formerly FAS 123(R)]. Related topics that Albeck is able to address include the valuation of stock options and other equity vehicles, including the development of required assumptions for the Black-Scholes option-pricing model, the Lattice (binomial) model, and the Monte Carlo simulation, which all better approximate compensation expense.
The following is a list of share-based compensation issues that Albeck clients commonly encounter, and which Albeck has core competencies to address:
1. Traditional Stock Option Awards
2. Performance Awards with Market Conditions
3. Modifications of Equity Awards
4. Reconciliations of Forfeiture Estimates
5. Employee Stock Purchase Plan Valuations
Documentation (Technical Memorandum)
Albeck believes that the development of all assumptions, valuations, and the resulting journal entries should be transparent and properly communicated to all interested parties. As such, sufficient documentation for the development of assumptions, the applicable technical guidance, and the detailed mathematical calculation is essential. Albeck will couple the valuation calculation with a technical memorandum which captures the related assumptions and guidance.