Venture Capital and Private Equity Valuation Support: ASC 820

Driven by ASC 820, fair value accounting requires venture capital and other private equity investors to provide supporting documentation around the carrying values of their portfolio holdings.  Teknos provides valuation reports, positive assurance opinions, and other valuation support to a number of firms, often in conjunction with fiscal year end.

We offer a range of services to assist with valuation and reporting requirements:

  • Valuation of individual companies or an entire portfolio in connection with financial statements and limited partner reports;
  • Valuation of complex securities such as warrants and embedded derivatives;
  • Assisting limited partner committees (LPCs) with cross-fund investments;
  • Meeting Small Business Administration (SBA) and other regulatory compliance requirements;
  • Appraising partner interests for gift and estate purposes;
  • Rendering positive assurance opinions for lending, litigation, and other purposes;

We can provide as much or as little valuation support as your organization needs.  We can:

  • Consult with the venture capital firm and its auditor to select the portfolio companies with the greatest potential to affect portfolio value;
  • Value individual companies, if appropriate;
  • Offer analytical support to the finance staff of the venture capital firm by providing
    • comparable company or acquisition transaction selection based on our extensive knowledge of the information technology, life sciences, and alternative energy and cleantech markets and access to expensive databases,
    • sophisticated allocation tools (including Black-Scholes option and binomial lattice models),
    • financial data and valuation metrics to utilize in calculating valuation ranges (which leaves that the final value decision for each portfolio company in the hands of the venture capital firm).
  • Address questions raised by Big Four and other accounting firms in the course of Statement on Accounting Standards 73 (SAS 73) and similar reviews of valuation work.

To start a discussion about how we could support you in venture capital or private equity reporting, please contact us: