Complex Securities Valuation

Eton provides expert complex securities valuation services for financial instruments, using sophisticated models for reliable, audit-defensible results.

Our Complex Securities Process

Day 1
Day 2
Day 8
Day 10
Forever
Information Collection
Valuation Modeling and Analysis
Draft Report Delivered; Client Review and Approval
Final Report Delivered
Audit Support

Our Complex Securities Advantage

Navigating the intricate world of complex securities and financial instruments demands precision, expertise, and deep understanding. Valuing complex securities for early-stage startups can be challenging due to factors such as limited historical financial data, high levels of uncertainty, and the unique features of the securities. These challenges require the use of sophisticated valuation models and a deep understanding of the startup’s business, industry, and risk profile. Eton specializes in navigating these challenges, providing accurate and reliable valuations for startups and their complex securities.
Up-to-Date Expertise

Changes in market sentiment, competitive dynamics, or regulatory environments may alter the perceived value and risk profile of complex securities. Eton is well-versed in the changing landscape to deliver optimal and accurate valuations.

Tailored Approach

Our team of experienced experts uses a combination of proven methods and proprietary tools to deliver data-driven valuations, considering each company's financial performance, financing history, market trends, and comparable public and private companies.

Proven Track Record

Eton Venture Services specializes in the valuation of complex securities, providing clients with accurate, impartial, and independent assessments essential for informed decision-making, risk management, and regulatory compliance.

Unparalleled Expertise

Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.

"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

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FAQs

What are complex securities and how do they differ from traditional securities?

Complex securities are financial instruments that have unique structures and characteristics, often involving embedded options or derivatives. Unlike traditional securities such as stocks and bonds, these instruments often involve non-linear payoffs and may require advanced valuation techniques. They can provide opportunities for portfolio diversification and risk management, but also require a deeper understanding of their underlying components.
The choice of valuation method can have a significant impact on the estimated value of complex securities. Different methods, such as the Black-Scholes model, Monte Carlo simulation, or binomial lattice model, may produce varying results depending on the specific characteristics of the security. Selecting the appropriate method for a given security is crucial for obtaining accurate valuations and ensuring that potential risks and rewards are adequately captured.
Obtaining third-party valuations of complex securities ensures that startups have an unbiased, objective assessment of their securities’ value. This can be critical for regulatory compliance, investor negotiations, and financial reporting purposes. Engaging a reputable valuation firm like Eton Venture Services helps startups obtain accurate, defensible valuations that meet industry standards and support strategic decision-making.
Valuing complex securities for early-stage startups can be challenging due to factors such as limited historical financial data, high levels of uncertainty, and the unique features of the securities. These challenges require the use of sophisticated valuation models and a deep understanding of the startup’s business, industry, and risk profile. Eton Venture Services specializes in navigating these challenges, providing accurate and reliable valuations for startups and their complex securities.
Startups should revalue their complex securities periodically, typically at least annually or when significant events occur that could impact the securities’ value. Factors that may trigger a revaluation include changes in market conditions, updates to the company’s financial performance or capital structure, regulatory or tax changes, or the issuance of additional securities. Regular revaluations help startups maintain accurate and up-to-date assessments of their complex securities, supporting informed decision-making and compliance with relevant regulations.

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