Using Monte Carlo to Value Warrants With Down-Round Protection

Business Valuation UpdateVol. 23 No. 4
April 2017
Jared A. Hannon, CVA
Oksana Westerbeke, CFA, CEIV


Warrants with down-round protection (also referred to as a price protection feature) have been a hot topic lately, from the perspective of both auditors and the U.S. Securities and Exchange Commission (SEC). Because of this increased scrutiny, valuation s ...