Valuing investments is a critical issue for the private equity and venture capital industry. After more than five years of effort, the AICPA has published the final version of the Accounting and Valuation Guide, Valuation of Portfolio Company Investments of Venture Capital and Private Equity Funds and Other Investment Companies. This session will highlight the key concepts from the new guidance.
Understand the key issues where the new guidance may clarify best practices
Identify the topics covered in the guide and understand how best to use the guide to address specific questions of interest
Understand the appropriate basis of valuation for valuing an enterprise for the purpose of valuing the securities in the enterprise, and the importance of calibration
Understand the “value of debt for the purpose of valuing equity” and how that value is different from other measures of the value of debt