Illustrative sample
See how AVAL presents a valuation conclusion
This sample uses fictional company information and values. It demonstrates report structure and visual presentation only; it is not a completed valuation or an example of any client work.
Conclusion
Common stock fair market value
Based on the facts, assumptions, methods, and limitations summarized in this illustrative report.
Capital structure and security rights
One illustrative OPM case, from contractual rights to the common-stock conclusion. No accrued preference dividends or participation caps are assumed.
| Security | Shares | Key rights |
|---|---|---|
| Series B | 500,000 | 1× non-participating; $5m preference, senior to Series A; 1:1 conversion. |
| Series A | 1,000,000 | 1× non-participating; $5m preference, junior to Series B; 1:1 conversion. |
| Common | 2,000,000 | Residual participation after preferred liquidation preferences. |
| Options | 500,000 | $2.00 exercise price; exercise proceeds reflected in the breakpoints. |
| Fully diluted | 4,000,000 | Includes preferred as converted and all options. |
Equity value
$42.6MAssumed total equity value for this illustration.
Allocation
OPMPreferences and conversion economics reflected.
Marketability
18.0%Illustrative discount applied to common stock.
OPM breakpoint analysis
Each breakpoint marks a change in economic participation. Black–Scholes call values at successive breakpoints determine the incremental value allocated to each security class.
- Equity volatility
- 55.0%
- Risk-free rate
- 4.25%
- Time to liquidity
- 3.0 years
- Dividend yield
- 0.0%
| Breakpoint economics · USD millions | Allocation of incremental value (%) | |||||||
|---|---|---|---|---|---|---|---|---|
| Breakpoint event | Lower | Upper | Call value | Incremental | Series B | Series A | Common | Options |
| 1. Series B receives liquidation preference (seniority rank 1) | 0.000 | 5.000 | 42.600 | 4.367 | 100.00% | 0.00% | 0.00% | 0.00% |
| 2. Series A receives liquidation preference (seniority rank 2) | 5.000 | 10.000 | 38.233 | 4.090 | 0.00% | 100.00% | 0.00% | 0.00% |
| 3. Common stock participates | 10.000 | 14.000 | 34.143 | 2.952 | 0.00% | 0.00% | 100.00% | 0.00% |
| 4. RSUs / options exercise and participate | 14.000 | 21.500 | 31.191 | 4.746 | 0.00% | 0.00% | 80.00% | 20.00% |
| 5. Series A converts and participates | 21.500 | 39.000 | 26.445 | 7.894 | 0.00% | 28.57% | 57.14% | 14.29% |
| 6. Series B converts and participates | 39.000 | ∞ | 18.550 | 18.550 | 12.50% | 25.00% | 50.00% | 12.50% |
| Total incremental value | 42.600 | Reconciles to total equity value | ||||||
Call value is the option value at the lower breakpoint. Incremental value is that call less the call at the upper breakpoint; the final band has no upper limit and its upper call value is zero.
Allocations total 100% within each band before rounding and apply to incremental value, not total equity. Preferred receives either its preference or its as-converted participation, not both. Figures are rounded for presentation.
On smaller screens, scroll the table horizontally to see every share class.
Allocation reconciliation
Each class receives the sum of its percentage allocation across all six incremental option values. Dollar amounts below are in USD, not millions.
| Security | Shares | Allocated value | Marketable / share |
|---|---|---|---|
| Series B | 500,000 | $6,686,210 | $13.37 |
| Series A | 1,000,000 | $10,983,043 | $10.98 |
| Common | 2,000,000 | $20,534,920 | $10.27 |
| Options | 500,000 | $4,395,827 | $8.79 |
| Total | 4,000,000 | $42,600,000 | Before DLOM |
- Common / share, marketable
- $10.2675
- Less: 18.0% DLOM / share
- $1.8481
- Common / share, non-marketable
- $8.42
Common-stock value is divided by 2,000,000 common shares, then reduced by the assumed discount for lack of marketability (DLOM). The discount is applied to common stock only in this illustration; the other class values above are marketable indications. Per-share calculations use values before display rounding.
What the sample demonstrates
The excerpt leads with the subject interest, valuation date, status, and concluded per-share value. A complete OPM schedule shows lower and upper breakpoints, call and incremental values, and allocation percentages for every share class. Capital structure, model assumptions, class totals, and the marketability discount reconcile to the common-stock conclusion.
A real engagement is tailored to its purpose and facts. Sections, methods, and supporting schedules vary with the company and subject security.
What the sample does not represent
The fictional values are not market data, a fairness opinion, investment advice, tax advice, accounting advice, or a conclusion that can be relied upon. No client information appears in the sample.
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