Business & Economic Valuation Services - Catalyst Economic Consulting

Valuation Services

Evaluating fair value in Delaware appraisal matters
Valuing securities found in startups and venture backed companies
Estimating the arm’s length value of platform contributions in transfer pricing

Valuation Services

Evaluating fair value in Delaware appraisal matters
Valuing securities found in startups and venture backed companies
Estimating the arm’s length value of platform contributions in transfer pricing

Catalyst Economic Consulting provides business valuations of private companies, startups and venture capital for dispute resolution. We also provide valuation consulting services relating to transfer pricing and contracts for litigation. When acting as a valuation expert witness, we translate complex valuation principles into easily understood testimony which has been favorably cited by courts.

Our Experience

Catalyst’s valuation experience is the result of years of analysis of different business, securities and contract valuations. Our personnel taught many of the professionals in the valuation field today in the best business schools, law schools, and professional accreditation programs in the nation. We help clients involved in litigation better understand valuation covering a range of segments including:

Business Valuation

Catalyst specializes in performing the complex economic and financial analyses required to support reliable valuation. We have conducted and reviewed business valuations in fair market value appraisal matters involving the Delaware Court of Chancery, mergers and acquisitions valuations of public and private companies as well as disputes in international arbitration involving cross-border transactions.

Evaluation of Merger Consideration Involving a REIT

Startup and Venture Capital Valuation

Catalyst has conducted and reviewed business valuations of startups and venture capital funded private companies in litigation or disputes. Startups and venture-backed businesses often issue complex securities, have limited operating history, and face uncertainty regarding future performance. Reliable estimates of value can still be achieved using economic and financial analysis. In some cases, valuations require complex economic modeling to link the value in question to another value that is known using arbitrage valuation techniques.

Venture Backed Startup Valuation in Breach of Contract Claim

We calculated the business value of an online startup attempting to sell stamps and postage through a web-based platform. The online retailer had received accreditation through the USPS, but repeated attempts to launch the platform failed to meet owners’ expectations. We estimated business value by backing out the fair value based on the prices of recently issued convertible preferred debt. Our analysis was relied upon by our client to achieve settlement.

Securities and Derivative Valuation

Our experience also includes the review and valuation of financial securities including privately placed 144a straight and convertible debt, equity securities, OTC traded equity and debt securities, and preferred equity typically encountered in venture-backed businesses.

Catalyst relies on facts and circumstances to dictate the most reliable valuation methodology. While some securities can be readily valued with known financial models, other securities require unique consideration. Financial valuation of securities with option-like payoffs and derivatives can require complex Monte Carlo simulation techniques or unique arbitrage valuation techniques.

Valuation of Common Equity in a Breach of Contract Matter

Catalyst Economic Consulting was asked to evaluate the fair market value of new Class B untraded shares offered by a music streaming platform. We evaluated the economic rights of these new shares relative to pre-existing Class A shares that traded on a public exchange. Our analysis indicated that the share prices of the pre-existing shares could be relied on to derive the fair market value of the merger consideration. Our analysis was relied upon by our client to achieve settlement.