Derivative Valuation and Share-Based Compensation
Many securities issued in connection with share-based compensation or M&A transactions involve derivatives that require a valuation for financial reporting or tax purposes.Contact us
Explore Valuation Services
Our quantitative finance professionals specialize in developing customized models and deriving supportable inputs for these valuations.
Our services include:
Kroll has deep experience with the full range of equity valuation techniques, including:
Monte Carlo simulation analysis which captures path dependency and correlation
Binomial lattice models, customized to capture key features such as early exercise behavior
Closed form solutions such as the Black-Scholes formula
Least Squares Monte Carlo simulation which captures both path dependency and early exercise behavior
Default and recovery rate modeling
Our professionals are skilled in determining which approach is most appropriate, and tailoring the analysis to the specific situation at hand.