Stout performed a series of independent equity valuations over a one-year period to comply with tax and financial reporting requirements (IRC 409A and ASC 718) for a medical device company focused on non-invasive therapies for psychiatric and neurological disorders. The company's capital structure included common stock, warrants and options at various strike prices, and numerous classes of preferred stock. Additionally, the company was considering a variety of exit scenarios including an initial public offering and a sale to a strategic buyer. As a result, our equity valuations applied a hybrid method that considered both an option pricing method and a probability-weighted expected return method.

In addition to providing equity valuation reports for compliance purposes, Stout also developed an Excel-based financial model to be used by company executives in understanding the expected payouts to various shareholders under different potential exit scenarios. Ultimately, our final valuation report and financial model was issued approximately one month prior to the company going public.