October 1, 2020

Business Valuation Update published an article by Director Anthony Banks and Senior Manager Taylor Rosanova, about the valuation of convertible notes using a binomial model.

Business Valuation Update

By Anthony Banks, Director, Advisory Services & Taylor Rosanova, Senior Manager, Advisory Services

Business Valuation Update published an article by Director Anthony Banks and Senior Manager Taylor Rosanova, about the valuation of convertible notes using a binomial model. Valuation

Excerpt:

Since there is virtually no transparent guidance for using binomial models to value convertible notes, we suggest that valuators provide fully functional binomial models when requested so that reviewers can “look under the valuator’s hood” and the valuation of these complex instruments can be subject to the same scrutiny that most other valuations are subject to without the reviewers being reminded of John Lennon’s quote.

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