New Date: Wednesday, September 16, 2020
10:00am-11:40am PT / 1:00pm-2:40pm ET
Format: A BVR Webinar

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Featuring  (click image for bio)

Antonella Puca
Alvarez & Marsal
Brett Hickey
Star Mountain Capital
Shaun Maloney
Eisner Amper

About This Program

A significant component of the transaction price in an M&A or buyout transaction often consists of proceeds that are “contingent” upon the target company’s achievement of certain performance targets after the closing has taken place. From the perspective of the seller, “contingent consideration” represents the right to receive additional assets or equity interests from the buyer (earnout), or the obligation to return part of the proceeds from the transactions (clawback) if specified future events occur or conditions are met. Join Shaun Maloney and Antonella Puca, for an overview of the valuation of contingent consideration, based on the guidance of The Appraisal Foundation in VFR No. 4 Valuation of Contingent Consideration, the AICPA Guide on the Valuation of Portfolio Investments of Venture Capital and Private Equity Funds and Other Investment Companies, and other best practices. With a discussion of the basic characteristics and different types of contingent consideration and how to select a suitable valuation approach depending on the underlying metric and nature of the contingency, attendees receive practical, step-by-step examples of how to implement the ASA and AICPA guidance in specific circumstances along with illustrative examples how to apply option pricing and Monte Carlo simulation in a number of case studies. The webinar will be introduced by a conversation with Brett Hickey, Founder and CEO of Star Mountain Capital, who will provide a unique perspective from the investment side on M&A activity in the middle market and how earnouts are being negotiated in the current environment.


  • Contingent consideration: definition, types, accounting guidance and valuation methodologies
  • Earnout valuation using BSM option pricing models: Case Studies
  • Earnout valuation using Monte Carlo Simulation: Case Study
  • Valuation of clawbacks using BSM option pricing models: Case Study

Learning Objectives

  • Describe the ASA and AICPA Guidance on the valuation of contingent consideration
  • Identify a suitable valuation approach to value contingent consideration depending on the characteristics of the earnout/clawback and the related contingency.
  • Illustrate how to use Black-Scholes-Merton (BSM) option pricing models in earnout valuation
  • Illustrate how to use Monte Carlo simulation in earnout valuation
  • Illustrate how to use a BSM option pricing model to value a clawback

Single Connection Policy

Admission to this event authorizes one computer and phone connection for one location. These connections may be transferred users and/or locations. Multiple concurrent connections for a single admission registration are not allowed.

Multi-User CPE Policy

Admission to this program includes one CPE certificate for one individual. Any additional listeners requesting CPE must pay a processing fee assessed at the completion of the online CE survey for this course.

CPE Processing Fees may be bypassed by entering a valid, unused CPE Authorization Code (for single event purchasers) or by logging into BVR's website (for subscribers to BVR's Training Series).

CPE Information

Prerequisites: Knowledge of Business Valuation
Program Level: Advanced
Preparation Required: None
Delivery Method: Group Internet-Based
Recommended CPE: 2 Credit Hours (Accounting Technical)

Closed Captioning:

BVR now has closed captioning on all 2019 past programs. To try out this enhancement, subscribers can login to the Desktop Learning Center, select a program, and click play video. The captions will start to play automatically, and can be disabled from the player per your preference.

Business Valuation Resources is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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