Complex Securities Valuations

Companies increasingly use innovative deal structures to optimize the risk reward metrics in their transactions leading to growing use of complex instruments like earn-outs, structured debt and equity-based derivatives, and several combinations thereof.

While these instruments have emerged as a powerful tool in corporate transaction strategy, the valuation of such complex securities pose a major challenge and often has significant implications. A wide fluctuation in value of such instruments can have significant impact on the Company’s future earnings

Aranca’s complex securities valuation experts use sophisticated models and advanced analytics to help clients understand the implications at pre-transaction decision making stage as well as to meet financial reporting requirements without any audit hassles. Here are some select situations where clients use our services:

Funding rounds with complex term sheets involving, preferred stock, common stock along with other equity derivatives (options, warrants, etc.)
Funding rounds involving a combination of equity, debt, milestone payments, future royalty payments across multiple tranches, etc. (particularly life-Sciences companies)

What Our Clients Say

"I must compliment you for the outstanding job you did on our PPA assignment. The report was of high quality and you managed to adhere to short time lines. It is difficult to find responsive and knowledgeable firms that can also offer competitive cost advantage."

CFO, A leading CRM Software firm

"Aranca did a very comprehensive job in performing a valuation of our company. The team was extremely responsive and professional. Our investors said that the report that Aranca wrote was among the best that they had seen for any of their portfolio companies."

Finance Head, Aryaka Networks Inc.

CFO, Dachis Group

"Thanks for all of your efforts and commitment to our project. The team did a great job in a short period of time, and I really appreciate it! I’ve worked with multiple business valuations firms in my past, and the job that your team did was by far the best."

CFO, Leading US ecommerce platform

"Aranca did a great job on the 409A report for us. The analysis was extremely thorough and the report was of the highest quality. Greatly exceeded expectations! Thank you."

Senior VP & CFO, New Leaf Symbiotics

"We have had a few valuations done by Aranca. [There were] absolutely no problems with the reports; we have a very complicated cap structure and have filed an S-1. The SEC has reviewed and blessed the results and the supporting report. These were done expertly and at a very competitive price."

Partner, Legal Counsel Firm

"We were looking to accurately and effectively assess and evaluate our IP portfolio to commercialize our assets better or raise funds. We needed experts who understood technical aspects of the patents to determine value with respect to the competitive landscape, and also be able to translate it into a comprehensive but easy to understand financial analysis for potential investors and third-parties. That’s why, we chose Aranca because of its blend of strong Intellectual Property research and valuation capabilities.

The Aranca team was extremely professional, thorough and collaborative while working with our in-house team. We were kept in complete sync during the project engagement, as Aranca conducted the technology strength assessment and built a comprehensive valuation report with detailed market analysis and financial forecasts. To our delight, the team went the extra mile to handle our project deftly, and ensured our needs were completely met. We would score Aranca an ’11 out of 10’ for this project."

Stephen Burnett, Co-Founder & CEO, Koolbridge Solar, Inc.

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Leverage our quantitative & analytics expertise coupled with the market perspective to navigate challenges related to valuation of complex financial instruments.

Valuation & Financial Advisory

Knowledge Library

Healthtech Startups - Driving Innovations in Healthcare

Secondary Sale — How Not to Turn it Into a 409A Nightmare

Dealing with Inorganic Growth in Valuations Based on Market Approach

Investment in Defense Tech: A Growing Sector in the US and Europe

Multi-Asset PPA in a Single Transaction: Emergence of Corporate Goodwill

Effects of Non-Compliance of ASC 805 or IFRS 3

Goodwill and Bargain Purchases: The Essentials of PPA

Navigating Early-Stage Valuation

Cost of Equity Explained: Methodologies and Best Practices

Oman to reap revenues from new VAT system

Modi’s surprise move on rupee notes has come as a pleasant surprise indeed for Indian internet startups

When could China onshore bonds be included on global indices?

Aranca is a global research analytics and advisory firm with over 20 years of experience in helping organizations take strategic business and investment decisions fearlessly and with utmost conviction.