Complex Securities Valuation

KNAV specializes in valuing complex financial instruments in Canada, helping clients navigate the challenges of contingent consideration, convertible securities, and equity-based derivatives. Our services ensure accurate and transparent financial reporting, meeting regulatory requirements and providing clients with the insights needed to manage risk and optimize their financial strategies.

Companies in Canada are increasingly utilizing innovative financial structures, such as contingent consideration, convertible and hybrid securities, and equity-based derivatives, to optimize their risk-reward strategies. While these complex instruments can be powerful tools, they also present significant challenges in accounting and valuation, potentially leading to unexpected financial reporting implications.

At KNAV, we specialize in valuing a wide range of complex financial instruments, offering clients comprehensive solutions for accurate and transparent reporting. Our team provides in-depth analysis and independent valuations for contingent consideration, convertible and hybrid securities, corporate guarantees, and employee stock options, including Stock Appreciation Rights (SARs), Performance Share Units (PSUs), Restricted Stock Units (RSUs), and Phantom stocks. We deliver detailed reports that meet the stringent requirements of Canadian auditors and regulatory bodies, ensuring your financial reporting is reliable and compliant.

Our expertise extends to the valuation of embedded derivatives, warrants (including token warrants), equity and credit swaps, forward agreements, and structured products such as Collateralized Debt Obligations (CDOs), Collateralized Loan Obligations (CLOs), Asset-Backed Securities (ABS), and Residential Mortgage-Backed Securities (RMBS). We also assist with valuing non-controlling interests, interest rate derivatives, and complex capital structures, providing tailored solutions for the allocation of equity value. Our team helps clients benchmark interest rates for debt instruments and assess current expected credit losses, ensuring you have a clear understanding of your financial position.

Whether you’re navigating profit interest, carried interest, or the complexities of structured products, our valuation services provide the clarity and insights you need to make informed decisions. With our extensive experience and commitment to accuracy, we help clients manage risk, meet regulatory requirements, and achieve their financial objectives in the Canadian market.