Special Transactions


A wide variety of special circumstances can have a significant impact to outstanding equity awards including corporate transactions, recapitalization events, and an opportunity to either exchange or choose an equity award.

Infinite Equity has experience in the following areas:

Acquisitions and
Business
Combinations

A company will frequently issue replacement stock awards as part of an acquisition or business combination. The new awards may represent consideration transferred and be representative for past services. Infinite Equity can help support the determination and allocation of the fair value of the award into the purchase price for services prior to the business combination, as well as ongoing compensation expense for services after the acquisition



Spin-Offs

A spin-off is considered an equity restructuring which has several complex design considerations and accounting consequences. Both the “concentrated” and “basket” approaches of converting equity can create accounting challenges. Our expert team can help you from design to implementation your program with confidence



Splits and
Special
Dividends

A stock split or special dividend is considered an equity restructuring and can have significant administrative and accounting impacts, especially if discretionary antidilution provisions exists. Infinite Equity can navigate these challenges to ensure proper accounting treatment is applied and auditors are satisfied



Underwater
Stock Option
Exchanges

An exchange of underwater stock options for new employee equity (options,stock, or performance awards) is one of the more complex equity programs to design and implement. It is a balancing act between employee, company, and shareholder interests. Infinite Equity can guide your human resources, legal, financial reporting, and stock administration teams through the process to arrive at an exchange program that achieves stated objectives while balancing these key stakeholders.



"Choice"
Programs

Equity "choice" programs are growing in popularity allowing employees to customize their ownership portfolio to meet their own risk profile and desired award. The “choice” can vary from type of equity awards, length of vesting, to a variety of other vehicles or features. There are many decisions necessary to design the potential menu and how to utilize technology for implementation and ongoing administration. Infinite Equity will guide your organization through the design process and project manage the implementation process to ensure the program is compliant and participant perceived value is maximized.


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