Calibration With OPM in Early-Stage Enterprises: A Fair Value Update

Business Valuation UpdateVol. 25 No. 3
March 2019
Neil J. Beaton, CPA/ABV, CFA, ASA
Andreas Dal Santo, CFA, ARPM
Antonella Puca, CFA, CPA/ABV, CEIV, CVA
fair value for financial reporting
fair value, fair value measurements, private equity, venture capital

Summary

Based on new draft guidelines, a review of how a calibration model can be established based on the initial transaction price of an investment in an early-stage enterprise. Also discussed is how such a model could be used in subsequent measurement periods to estimate the fair value of the enterprise and of equity interests in a portfolio company.