The goal of the survey is to assist valuation clients in selecting a valuation date. Valuation date issues are more prevalent in common stock valuations (a.k.a. 409A valuation) because it requires strict coordination with equity-based compensation dates.
Shadow Preferred Stock Devalues Convertible Note
Convertible notes are starting to resemble CDOs, collateralized debt obligations that led to the 2008 financial crisis, partly because few understood how they worked. From the economic perspective, convertible notes are complex; that includes Simple Agreements for Future Equity (SAFEs). In fact, they are referred to as “complex financial instruments” by auditors and financial regulators. A typical convertible note is
March 24, 2022
