Steve Davis, Managing Director, was recently quoted in Private Funds Management’s article about the new AICPA guidelines entitled, Recalibrating the Valuation Process. See some of his quotes below and follow the link to subscribe and view the full article.
“On first blush, this is a great first step. It should provide some clarity and consistency and may increase the level of documentation required, and my sense is that everyone will be served well by adopting these methodologies.”
“Calibration encourages a more holistic approach to choosing inputs.”
“The reality is these warrants are typically just sweeteners to potentially boost future returns. But now they have to perform additional valuations for these warrants, even if they only represent a very small percentage of the portfolio.”