Nathan O’Connor
Managing Director
Reporting
We provide companies of all sizes with financial reporting services for stock-based compensation.
Valuation
Get fair value measurement and modeling for all sorts of equity-based awards and securities, whether business as usual or special circumstances.
Complex Securities Valuation
HR Advisory
Our HR advisory services provide the insight you need to improve program design, grant more equity, and tell a cleaner story in your proxy and financial statements.
CEO Pay Ratio
Resources
Dive into our library of publications on a wide range of stock-based compensation topics.
About Us
We’re dedicated to bringing insight, control, and expanded capability to your compensation strategy.
Share-based payment awards assumed in a business combination can be particularly risky as timelines are compressed, communication can be limited, and handoffs from corporate development can be fumbled. The guidance in ASC 805 points to the valuation framework of ASC 718, but this can be deceiving. The fair value measurement principles in ASC 718 apply, but not your regular valuation techniques and procedures.
Generally, it’s not appropriate to extrapolate the expected term estimation method used for new option grants to options that are partway through their life and not at-the-money. To correctly develop exercise behavior assumptions for options midway in their life and not at-the-money (i.e., all the options being assumed), lattice models should be used instead of the Black-Scholes formula.
Equity Methods has helped companies with assumed awards from large and small acquisitions. We can help you in the following areas:
Get a complex situation under control without taking on simplifying assumptions or other audit risks.
contact usThis updated white paper provides an overview of the key considerations when assuming share-based compensation awards in a business combination. In addition to detailing the ASC 805 accounting model, we…
With corporate merger and acquisition (M&A) activity on the rise, the accounting for share-based payment instruments assumed in an acquisition has become a topic of intense focus. This Equity Compensation…
Everything changes in M&A transactions, starting with the treatment of equity awards. In an acquisition, acquirers need to decide whether to assume the equity of the target or cash out…
Use our checklist to help your team navigate the key considerations when assuming equity awards from an acquired company.
In this on-demand webcast, we explore core principles, potential pitfalls, and practical implementation tips for getting stock-based compensation right when a corporate transaction happens.
Managing Director
Nathan O’Connor is a Managing Director at Equity Methods, a consultancy that helps hundreds of public and private companies model, value and account for equity compensation and other complex securities.…
Read moreHighlights from the 26th Annual NASPP Conference
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Managing Director, Valuation & HR Advisory Services
“I’m a teacher at heart — always happy to field questions and help clients understand, whether it’s at a high level or deep in the details.” David is a managing…
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