Josh Schaeffer, PhD
Managing Director, Valuation & HR Advisory Services
Complex securities have gained renewed attention in today’s tumultuous economic environment. In the scramble to raise cash, many companies are looking to instruments like convertible debt, convertible preferred stock, and warrants as an alternative to capital markets. Complex securities can also be an attractive performance incentive and negotiation tool.
However, these innovative instruments are tricky to value. The slightest complexity can lead to accounting surprises and unexpected earnings volatility. Whether your organization is an emerging growth company or simply looking to save on interest expense, our library of articles and on-demand webcasts can help you navigate the unique landscape of complex securities. Don’t see what you need here? Please contact us directly—we’re happy to help.
In this webcast, we focus on different types of convertible securities and discuss their increased effectiveness in times of economic turmoil.
Josh Schaeffer, PhD and Gavin Hagfors · 6/23/2020
For startups that need cash, convertible bridge notes—which allow investors to invest today to get into future rounds at a discount—can be a good alternative to traditional funding sources.
Josh Schaeffer, PhD and Gavin Hagfors · 6/1/2020
Convertible bonds are debt instruments that promise a specific cash flow stream. In today’s economy, they offer a unique value proposition. Here’s why.
Josh Schaeffer, PhD · 5/15/2020
In this blog post, we review key features of the CECL standard and take a look at what companies will need to do to be ready.
Josh Schaeffer, PhD · 11/10/2019
What can an emerging growth company do to raise funding now, before the next financing round? Convertible bridge notes are a creative option.
Gavin Hagfors and Josh Schaeffer, PhD · 7/22/2019
Get to know this simple but effective early-stage financing technique, including how it affects the valuation of the underlying shares.
Josh Schaeffer, PhD · 6/18/2019
The guidance calls for a more formal valuation methodology based firmly on option theory, using the market for real options.
Josh Schaeffer, PhD · 2/22/2019
How should contingent consideration, also known as earnouts, be valued? The Appraisal Foundation has developed some guidelines.
Josh Schaeffer, PhD · 8/28/2018
Convertible securities can be an attractive source of capital for mature and early-stage companies alike. But their dilutive impact is a potentially complicated issue. In this issue brief, we take a closer look at that impact and introduce the “if-converted method” as an elegant way to determine the dilutive impact of convertibles.
Josh Schaeffer, PhD · 6/28/2018
If your company is thinking about issuing warrants, or already has some outstanding, the impact of dilution is something you’ll need to know about.
Josh Schaeffer, PhD · 2/28/2018
Does your company have outstanding financial instruments with down round protection features? FASB may have saved you a lot of work.
Josh Schaeffer, PhD · 2/8/2018
The portion of value change due to changes in credit risk is now classified in other comprehensive income (OCI). Here’s how this standard affects reporting.
Josh Schaeffer, PhD · 6/27/2017
In this on-demand webcast, we discuss the valuation of earnouts—an important tool for getting M&A deals across the finish line.
Josh Schaeffer, PhD and Nathan O’Connor · 5/18/2017
On February 28, 2017, the Appraisal Foundation released an exposure draft on the valuation of contingent consideration. These are our comments.
Josh Schaeffer, PhD · 4/4/2017
Why do profits interests receive a valuation discount for lack of marketability while stock options don’t? In this blog post, we take a look at this interesting valuation quirk.
Josh Schaeffer, PhD · 1/11/2017
Why do companies end up with multiple classes of equity, and what are the valuation implications of such share classes? This Issue Brief reveals why multiple share classes exist and explains how their different features can make valuing these assets a challenge.
Josh Schaeffer, PhD · 6/5/2016
In this discussion, industry experts from Chatham Financial and Equity Methods provide insight on how different areas of fair value and derivatives accounting are being impacted by the current period of low interest rates.
Josh Schaeffer, PhD with Amol Dharghalkar, Dan Gentzel, CPA and Mike Scullard, PhD of Chatham Financial · 3/1/2016
Earnouts are important to many M&A deals because they connect the consideration paid to the future performance of the acquired company. Learn what they are, how they work, and how their valuation implications affect upfront and ongoing accounting.
Josh Schaeffer, PhD · 1/29/2016
Stock warrants are an attractive vehicle for sales incentives, corporate control transactions, and lending transactions. But watch out: Determining fair value can be tricky.
Josh Schaeffer, PhD · 1/15/2016
Warrants are outside financing instruments that require special modeling outside of Black-Scholes and give rise to other accounting implications.
Josh Schaeffer, PhD · 8/31/2015
Convertible debt combines features of debt and equity. Find out why companies issue it and how the terms you choose can dramatically affect the instrument’s valuation.
Josh Schaeffer, PhD · 8/30/2015
Convertible securities are tools which combine features of debt and equity financing. But they’re tricky to value and can lead to complicated accounting treatment. In this on-demand webinar, we explain ways to manage the risks and benefits of these complex securities.
Josh Schaeffer, PhD · 7/23/2015
An instrument with key features of both non-convertible debt and stock options or warrants can be attractive to investors and issuers alike. But the benefits can also be drawbacks.
Josh Schaeffer, PhD · 5/30/2015
Managing Director, Valuation & HR Advisory Services
Associate Director, Valuation Services
Managing Director