What’s It Worth?
Public markets can efficiently determine the value of many financial assets — publicly traded stocks, bonds and derivatives, for example.
But what if there is no public marketplace for your assets? This is the case with illiquid assets such as real estate and private businesses, but also restricted securities, stock options, auction-rate securities and bankruptcy claims. While demand is increasing for the valuation of illiquid assets, expertise for providing such valuations is limited.
Pluris was created to fill this gap. Our clients include some of the largest hedge funds, broker-dealers and banks in the world. Some of the valuation needs Pluris will help fill include:
- Portfolio Valuation – For investment banks, hedge funds and other investment funds, or other reporting entities, Pluris will provide valuations of restricted stock, warrants, auction-rate securities and other illiquid securities.
- Financial Reporting Valuation – For disclosure and accounting purposes, Pluris will provide valuations of stock option grants and non-vested shares of reporting entities, as well as valuations of complex derivatives.
- Tax Valuation – Pluris will value illiquid securities and other assets for estate tax, gift tax and income tax returns. We specialize in determining discounts for lack of marketability (DLOM).
- Litigation Support – Pluris provides shareholder litigation support services when expert assistance is required.
- FAS 157 Testing – Are you in compliance with FAS 157 and other financial accounting standards? We can let you know.
Regulators and investors are paying more attention than ever before to the valuation of illiquid assets. Regulatory improprieties can severely damage a fund’s or a company’s reputation. When investors no longer trust managers, they are likely to liquidate their investments.
Unfortunately, when a few companies push the legal boundaries, all businesses are affected. Using a professional valuation firm can help ensure that you have valuations that are not only fair and accurate, but are defensible if regulators ever question them.
The LiquiStat™ Database
How can you determine what price an investor would be willing to pay for your illiquid asset in an arm’s-length transaction?
The only reliable way to obtain this vital information is to compare the asset with other similar assets that were recently sold. The more data from real-world transactions a valuation is based on, the better you can support your opinion of an asset’s value.
Pluris Valuation Advisors has created the proprietary LiquiStat™ database of transactions in illiquid securities for this purpose. We believe our database provides the most in-depth, comprehensive empirical transaction data available on illiquid assets transactions.
It includes:
- LiquiStat/PIPEs (private investments in public equity)
- LiquiStat/ARS (auction rate securities)
- LiquiStat/Bankruptcy Claims