For most of the transactions nowadays, cash is no longer the only item to be paid as consideration. It is becoming more popular to structure a transaction with the involvement of various types of financial Instruments. Hence, an independent valuation on such items may be required for financial reporting of both public and private companies, according to relevant accounting standards such as IFRS 2, IAS 32 and IAS 39.
We have diversified experience in valuing different financial instruments such as:
- Convertible Bonds and Notes
- Preference Shares
- Restricted Shares
- Share Options
- Embedded Derivatives
- Callable/ Putable options
The structures of financial instruments are getting more complex with the various clauses embedded in the terms and agreements. Based on our knowledge on several valuation methodologies and our prior experiences, Avista can customize the most appropriate valuation model to reflect the terms and clauses of the particular instruments precisely. In addition to the widely adopted binomial model and Black-Scholes model, trinomial model and Morte-Carlo model may sometimes be an alternative in financial instruments valuation.