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.
Format
Webcast
NASBA Field of Study
Accounting
Level
Basic
CPE Credits
1.5
Instructor
Antonella Puca
Availability
3 months
Product Number
WC3289079
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
Key Topics
- 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
Learning Outcomes
- 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
- Attorneys
- Valuation Analysts
- Investors
Group ordering for your team
2 to 5 registrants
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