Private equity and venture capital firms continue to face growing scrutiny over valuation of portfolio company interests. There are several important changes in this area that occurred in 2019. In August, the AICPA released its new guide on the valuation of private equity and venture capital portfolio company investments. This followed new professional guidance issued in February on the valuation of earnouts. Additionally, new platform or add-on acquisitions in 2019 may experience increased attention on valuation and reporting for profits interests issued to employees as equity compensation.Highlights include:
- Overview and impact of the new AICPA PE/VC Valuation Guide
- Explanation and examples of various calibration methods
- Contingent considerations
- Audit planning information and tips
