Our team of actuaries and valuation specialists take the guesswork out of valuing equity awards — from stock options to complex performance-based vehicles. We produce audit-ready results that are both mathematically sound and designed to maximize your investment in equity compensation.
Assumption Development and Valuation Modeling
Our actuarial experts provide best-in-class solutions for the valuation of stock options and other equity vehicles in order to comply with ASC Topic 718 (formerly FAS123R) and IFRS 2. Our services include:
- Developing required assumptions for option pricing models, including expected option life, forfeiture rates and historical volatility;
- Measuring the potential impact of new or amended plan design features on expected equity compensation expense, including capped options and premium-priced options;
- Providing equity valuation guidance to private companies with limited internal and external benchmark data as they consider secondary market offerings or an initial public offering; and
- Navigating clients through key tax and accounting requirements under ASC Topic 718 and IFRS 2.
Delivering Audit-Ready Results
Our work doesn't end when we complete your valuation models and develop your equity assumptions. All of our valuation reports come with signed actuarial certificates and consulting support to ensure final audit compliance and sign-off is achieved. Over the years, we've worked with hundreds of clients in all industries to create a deep bench of proven solutions and best practices. We also worked the auditors of our clients to co-develop and test novel valuation techniques.
Employee Stock Purchase Plan (ESPP) Support
Employee Stock Purchase Plans with look-back provisions provide participating employees with significant upside potential, but also carry with them a number of unique valuation considerations. Our team understands the nuances of ESPP design, and can help clients address complex valuation issues involving discount options, call options, put options and interest foregone considerations.