Groves & Partners offer expert employee stock option valuation services to help companies accurately determine the value of their employee stock options. We understand that an employee stock option valuation requires specialised knowledge and expertise due to its unique characteristics. This includes factors such as vesting schedules, expiration dates, and exercise prices. Our team of valuation experts, consisting of Chartered Accountants and Registered Business Valuers, possess the necessary skills and experience to provide accurate and reliable employee stock option valuation services.
Our ESOP valuation services provide businesses with the following benefits:
- Accurate and reliable valuations: Our team uses industry standard valuation methodologies and techniques to ensure accurate and reliable valuations.
- Informed decision making: Our valuations provide businesses with a clear understanding of the true value of their employee stock options, enabling them to make informed decisions.
- Prerequisite company valuation: The valuation of employee stock options requires a pre-requisition valuation of the underlying company shares. We can value the shares of companies as we are also experts in this area.
Groves & Partners are committed to providing our clients with exceptional service, and delivering accurate and reliable employee stock option valuations.
Our Process
The value of employee stock options is dependent upon the specific structure of the employee stock option plan and the company itself. Our approach to valuing employee stock options is tailored in consideration of the situation of our clients.
Our typical process is outlined below:
1. Initial no-cost review
We commence by reviewing information regarding the employee stock option plan and company to the extent that this is available. In doing so, we will often review documents, such as employee stock option grant letters and financial statements. This review allows us to make an early determination of the nature of investigations we will need to undertake, as well as to understand the technical approaches required in valuing the employee stock options.
2. Confirm scope of engagement
Following the conduct of our initial review, we will advise you of our professional fees to undertake the valuation, and the scope of our engagement.
3. Data and information request
To enable an accurate valuation of your employee stock options, we prepare a thorough information and data request schedule. This data request is typically tailored to lessen the stress and the pressure involved when our clients gather their data.
4. Initial data and information review
We review the data and information provided in response to our information and data request schedule. We then conduct technical analysis, and consider any additional data or information required for the completion of our valuation services.
5. ESOP valuation report preparation
We will provide you with a report which outlines the value of employee stock options. We also provide a comprehensive explanation to outline our reasoning for selecting ESOP valuation methods, and our calculation of value derived from the specific valuation strategy.
6. Meetings with you and your advisors
We typically conduct regular meetings with you and your other professional advisors, such as your accountants and lawyers. This is to provide time-sensitive advice regarding the nature of the ESOP valuation and our work. We are committed to maintaining ongoing communication and engagement with our clients.