Duff & Phelps acquired Kroll in 2018 and unified under the Kroll brand in 2022.

These analyses typically involve option pricing models such as Monte Carlo simulations or binomial tree lattice. Our quantitative finance professionals specialize in developing customized models and deriving supportable inputs to value these derivatives.

Our services address the valuation of the following securities:

  • Embedded derivatives in connection with ASC 815 (conversion option of a convertible bond, change of control put option, make-whole payment upon conversion, etc.)

  • Debt component of a convertible note issuance in connection with ASC 470

  • Preferred stock for tax and financial reporting purposes

  • Call/Put options in connection with the remaining minority interest after the acquisition of a controlling interest

  • Securities with built in downside protection – payoff designed as a function of future stock price

  • Warrants with reset features that require liability accounting

  • Financial instruments such as interest rate swaps/options, currency swaps/options and equity derivatives

  • Credit derivatives such as CDS contracts and swaptions

Kroll valuation models are tailored to our clients' needs. We help companies select the most appropriate approach and estimate all required parameters (such as volatility, dividend yield, correlation, credit spread and illiquidity discount). We deliver a well-supported valuation that fulfills ASC 815, ASC 470, corporate income tax, estate tax, or other country specific financial/tax reporting requirements.

We have 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

We are experts in determining which approach is most appropriate, and tailoring the analysis to the specific situation at hand


Business Combinations / Purchase Price Allocation

Kroll’s expertise and independence have made us a leading provider of valuation services for business combinations.

Business Valuation Services

Kroll is the largest independent provider of business valuation services.

Business Modelling and Analytics

Our Business Modelling and Analytics team supports clients’ strategic decisions by providing robust quantitative solutions and delivering actionable insight from data.

Fresh Start Accounting

Valuation and accounting advice to assist companies in successfully emerging from bankruptcy.

Goodwill and Intangible Asset Impairment

Kroll is a leading provider of goodwill, intangible and long-lived asset impairment testing.

Machinery and Equipment Valuation

Kroll offers experience, reliability and transparency in the valuation of machinery and equipment for virtually every industry.

Strategic Value Advisory

Kroll helps clients enhance fundamental company value by optimizing their transaction, investment, growth and operational strategies.

Tax Valuation

Kroll specializes in tax valuation-related consulting.