Not All Warrants Are Created Equal: How to Spot Valuation Triggers
This article outlines how to identify those triggers, select the right valuation techniques, and prepare for the level of scrutiny auditors are increasingly applying to these instruments.
Profit Interests & Phantom Equity: A Guide to Avoiding Accounting Pitfalls
Profit interests and phantom equity are powerful compensation tools for private companies, especially LLCs and partnerships. While they offer flexible incentive structures and potential tax advantages, they also hide significant financial reporting complexities. Misunderstanding or misclassifying these awards can lead to audit scrutiny, painful late-stage rework, and material misstatements. Too often, companies treat profit interests…
