AccuVal Appraises Executive Deferred Shares
Client: $1.5 Billion Wireless Communications Device Provider
Challenge: Provide Definitive Support for its Valuation Conclusions to Address Auditor Scrutiny
One of the largest private U.S. providers of cellular handsets and personal data devices was issuing performance-based shares to its executives. Due to its industry experience and depth of expertise, AccuVal was retained to perform an equity valuation to meet the Financial Accounting Standards Board (FASB) Statement No. 123R requirements. The challenge was to arrive at an accurate estimate of value for the shares that would comply with FASB 123R reporting standards, which governs accounting for stock-based compensation.
AccuVal Approach
AccuVal conducted a comprehensive business enterprise valuation to serve as the basis for allocating the aggregate value to the company's various equity classes, including common and preferred shares. To analyze the organization's complex capital structure, both equity allocation methods and Monte Carlo simulation were applied.
Bottom Line: Share Valuation Accepted by Company and Auditors
The client and its auditors were satisfied that AccuVal professionally supported its valuation of the performance-based shares. The evaluation did not impair the company's profit or earnings potential.
The AccuVal AdVantage™
Depth of experience in executive compensation valuation. An intimate understanding of applicable accounting standards. Insight to assist companies in maximizing their competitive position in the marketplace. That's The AccuVal AdVantage™ at work.
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