מכשירים פיננסים

The financing aspect was always a significant component of start-ups lifecycle. In order to finance their ongoing operations, start-ups are often involved in various financing plans (such as OCS programs) and hold several rounds of equity and debt financing over their lives. Consequently, their equity structure is complex and includes several types of shares (preferred shares and ordinary shares) and warrants – a situation that requires these companies to perform different valuations.

Another relevant aspect in the industry is the equity compensation aspect. While the global economy is flourishing, many non-USA start-ups maintain deferred compensation agreements in which U.S. citizens or residents participate.

IRC Section 409A has a major effect on this, as the section applies to a wide variety of deferred

compensation plans, including employee options to purchase common stock. Accordingly, it has become a recent trend that auditors frequently require 409A valuations.

Proper handling of these aspects will make it easier for a company to hold future financing rounds,significantly reduce the future need to restate its financial statements if it decides on an IPO, and will also significantly ease the controls required by its independent auditor.

Forecasts & Valuations

Business Plan
Financial Forecasts
Company Valuations & WACC calculations

Equity compensation

Building Compensation Plan
Valuation of Employee Stock Option Plans (ESOP)
Valuation of an ordinary share for internal purposes & ESOP grants (409A)

Valuation of financial instruments & Preparation for an IPO

Valuation of Equity Instruments
Valuation of Debt Instruments
Preparation for an IPO (under IFRS/US GAAP)