Complex Securities

Companies have been increasingly using innovative structures to optimize the risk-reward metrics in their transactions, leading to the growing use of complex instruments like earn-outs, structured debt and equity-based derivatives, and such combinations.

While these instruments have emerged as a powerful tool in corporate transaction strategy, the accounting and valuation of such complex securities pose a significant challenge and often have unexpected financial reporting implications.

Our complex securities specialists have been at the forefront; offering clients comprehensive and integrated solutions towards analysing, valuing and accounting on a broad range of complex securities.

Our team of professionals are well equipped to provide transparent and independent valuation solutions, fully supported by a detailed narrative report suitable for review by independent auditors and the authorities in different jurisdictions.

Our experience includes providing valuation services for financial reporting, tax compliance and management planning purposes, and it covers the following:

  • Contingent consideration
  • Convertible/hybrid securities
  • Corporate guarantees
  • Employee stock options
  • Embedded derivatives
  • Warrants
  • Interest rate swaps
  • Forward agreements
  • Structured products (e.g., CDOs, CLOs, ABS and RMBS)
  • Non-controlling interests
  • Interest rate derivatives

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How is KNAV delivering Above & Beyond?

With our expertise we simplify complex securities analyses, valuation, and accounting.

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