Business valuation plays a vital role in both economic and accounting decision-making processes. Business valuation is not an exact science. It is intended to reasonably reflect the actual economic value at a specific point in time, using existing data, underlying assumptions and forecasts. Selecting the correct methodology is therefore of the highest importance. The immense experience accumulated by Financial Immunities allows us to select the appropriate methodology based on the business valuation’s purpose and uses.
Fair Value Assessment of Financial Derivatives
Independent fair value assessment of foreign currency derivatives, interest rates and the CPI for financial reports and footnotes, such as the 10K, 20F, IFRS7 and Galai. The fair value assessment is based on a structured methodology supported by objective information systems and accompanied by detailed expert opinions, presented to the company’s management and the accountants in a detailed manner.
Assessment of Liabilities to the Chief Scientist
Upon accepting a grant from the Chief Scientist, the company becomes obligated to repay the grant through royalty payments on future sales. In accordance with IFRS, the company must evaluate and present the value of this obligation in its financial reports. Our extensive experience working with the Chief Scientist allows us to provide additional value.
Pricing employee stock options while complying with regulatory standards. The assessment uses a range of conventional models, including the B&S and binomial models, along with complex models which require programming, such as the Monte Carlo simulation. Additionally, we work alongside the compensation committee when formulating a remuneration policy and comparative analysis of compensation for various position holders within the company.
Financial Immunities works closely with one of the largest law firms in Israel. This collaboration and our extensive experience providing consulting services to the Israeli Tax Authority on the subject of business restructuring enables us to offer broader perspectives and provide comprehensive solutions from the legal and the economic aspects.
Our highly-experienced team is entrusted with conducting a variety of business valuations, which serve as a base for financial reporting, goodwill impairment evaluation, business acquisitions, settling shareholder disputes, investor transactions, and fair value assessment of the company’s holdings.
Common Stock Valuation – 409A
Common stock valuation is generally required during transactions with investors, assessment of company holdings, and value estimates of anti-dilution provisions or employee stock options, and as a basis for reports prepared under section 409A of the Internal Revenue Code.
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