Debt/Equity with Conversion & Other Embedded Options

Financial reporting for debt and equity instruments is one of the most complex areas of US GAAP due to the maze of relevant accounting guidance and the sophistication of financial instruments and features.  Opportune has deep experience with debt and equity deal structuring, valuation, and reporting, which enables us to help clients navigate this complex area.  We get involved before financing terms are finalized to facilitate comprehension of the financial statement impacts before debt and equity instruments are issued.  We provide assistance with:

  • Distinguishing liabilities from equity and reporting for mezzanine financing
  • Identifying embedded features, such as redemption options and make-whole features
  • Reporting and valuations for conversion options
  • Allocation of proceeds when multiple instruments are issued in a single transaction