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Independent Convertible Instrument Valuation Services in Singapore
Are you looking for independent convertible instrument valuation Singapore services that are FRS 109-compliant and trusted by industries? If so, ValueTeam has proven reliable in this partnership given how complex yet crucial the journey is. After all, you need to get it right given the crucial roles it plays. Whether you need these services for tax purposes, mergers & acquisitions, regulatory compliance, decision making especially when investing and financial reporting, these experts will do an excellent job. You will enjoy compliant convertible bond, note and hybrid instrument valuation Singapore. Why note when the team has high level experience in Singapore Financial Reporting Standards (SFRS) including FRS 109. The services are industry-specific to accommodate standards and regulations in various industries. Here is a detailed discussion of this sector including how to value convertible instruments in Singapore. Check it out!
What Are Convertible Instruments?
Let’s understand the basics before delving into the valuation of complex financial instruments Singapore. Convertible instruments are hybrid financial securities or contracts, usually a combination of debt and equity. The contracts provide investors with periodic income and the right, but not the obligation, to convert the instrument into the issuer’s equity under specific conditions.
Common Types of Convertible Instruments
- Convertible Bonds: Long-term debt securities that carry a fixed interest rate and can be converted into shares at a predetermined price.
- Convertible Notes: Typically used in startup or early-stage financing, these short-term instruments convert into equity upon a qualifying financing round.
- Convertible Preference Shares: Shares that offer fixed dividends and may convert into common stock based on defined triggers.
- Other Hybrid Instruments: Structured securities that may combine debt, equity, and derivative elements tailored to investor and issuer preferences.
Key Features of Convertible Instruments
- Conversion Ratio/Price: Determines how many shares the holder receives upon conversion and at what price.
- Maturity Date: The date when the principal amount is due, if not earlier converted.
- Interest Rate/Coupon: Periodic payments made to investors, typically lower than standard debt due to the embedded equity feature.
- Call and Put Provisions: Allow issuers or holders to redeem or convert early under certain conditions.
- Conversion Conditions: Includes events like qualified financing rounds, IPOs, or change-of-control clauses that trigger conversion rights.
Benefits of Singapore FRS Convertible Instruments
Companies adopt convertible instruments to:
- Raise capital without immediate equity dilution
- Reduce interest costs due to the conversion option
- Improve investor appeal with upside participation features
Investors favor them for:
- Steady income through coupons or interest
- Exposure to equity appreciation without full equity risk
Convertible Instrument Valuation Singapore
Convertible Instruments Valuation has an option to be converted into equity at some specified events like m&a, specified time, change of management, liquidity events, etc. Some of the examples of convertible instruments are Compulsory Convertible Preference Shares, Complusoriy Convertible debentures, convertible notes, safe notes, warrants, convertible bonds, financial guarantees, call and put options, swap contracts, etc.
Importance of Accurate Convertible Instrument Valuation Singapore
Independent convertible instrument valuation is essential to ensure compliance, transparency, and fair decision-making. Key use cases include:
Convertible instrument valuation for financial reporting Singapore
Under Singapore FRS 109 – Financial Instruments:
- Convertible instruments must be classified as liabilities, equity, or compound instruments
- The proceeds must be split between debt and equity using fair value methodologies
- Embedded derivatives must be assessed for separate accounting treatment
- Subsequent measurements require amortized cost valuation and fair value remeasurement of derivatives
Convertible instrument valuation for M&A Singapore
- Valuations provide basis for fair exchange ratios
- Enable proper accounting for purchase price allocation (PPA)
- Assess conversion risk and potential dilution in post-merger scenarios
Convertible instrument valuation for funding in Singapore
- Ensures terms are economically fair for both issuers and investors
- Supports negotiations with accurate valuation of debt and conversion rights
Convertible instrument valuation for regulatory compliance Singapore
- ACRA and MAS may require valuation evidence in reporting disclosures
- Ensures audit readiness and financial reporting accuracy
Convertible instrument valuation for tax considerations in Singapore
- Fair market value of convertible instruments Singapore impacts tax treatments for gains, conversions, and revaluations
- Critical for cross-border structures and intra-group financing arrangements
WHY CHOOSE US
We are a specialized valuation company providing end-to-end assessment services. Our team has extensive experience in the field of valuation. Can you imagine over a decade of experience in independent convertible instrument valuation? That’s why we are trusted by startups, listed firms, law firms, and investors across Singapore. We apply methodologies approved by major auditors and compliant with FRS 109. So, expect transparent reporting, scenario modeling, and defensible assumptions.
Convertible Bond Valuation Singapore Methodologies
Discounted Cash Flow (DCF)
The method forecasts all expected cash flows including interest and principal. It also models different conversion scenarios and exit outcomes. Equally important, it adjusts for issuer credit risk via an appropriate discount rate. Lastly, it reflects probability-weighted paths to conversion, maturity, or early redemption.
Option Pricing Models
Option Pricing Models
It is used to value the embedded conversion right. Models applicable include Black-Scholes, Binomial Tree, and other customized frameworks. It incorporates inputs such as current share price, conversion price (strike), time to maturity, volatility (historical, peer-based, implied), risk-free rate and expected dividends.
There is also the output and that’s the present value of the conversion option, considering market volatility and time value of money
Hybrid Valuation Approach
It is a two-step method involving the following;
- Value the debt component using DCF
- Value the equity option using an option pricing model
- Sum the two values to determine the fair value of the compound instrument
Here is an excellent example;
- Convertible bond issued for S$1,000,000
- Debt value (DCF): S$850,000
- Option value (Black-Scholes): S$150,000
- Total fair value: S$1,000,000
Industry-Specific Applications in Singapore
In technology startups, convertible notes are commonly used in seed and early-stage funding rounds. Valuation considerations include future conversion terms, discount rates, valuation caps, and the potential impact on the cap table.
In the real estate sector, convertible bonds are often used to finance property development projects. The valuation of these instruments must consider asset-backed risks, project timelines, and developer reputation.
In manufacturing, hybrid instruments may be issued to fund research and development or to expand production capacity while minimizing equity dilution. These require careful modeling of future cash flows and market-driven discount rates.
In the financial services sector, banks and fintech firms may issue convertible instruments as part of capital raising strategies, where valuation must factor in regulatory capital treatment and potential systemic risk.
In biotechnology and healthcare, convertible notes are used to fund clinical trials and product development. The valuation process incorporates milestone-based funding triggers and high volatility projections.
In energy and infrastructure, especially for green and renewable energy projects, convertible instruments support early-stage capital needs. Valuations consider long-term cash flows, regulatory incentives, and project risk profiles.
In media and entertainment, convertible securities fund intellectual property development and distribution rights, requiring specialized valuation approaches to forecast income from IP monetization.
In education technology, convertible instruments are used to finance product scaling and geographic expansion, often involving performance-linked triggers.
In logistics and transportation, companies use hybrid securities to raise growth capital while managing leverage, with valuations incorporating fleet values, route projections, and market demand forecasts.
In agriculture and agritech, hybrid instruments help finance seasonal cycles, sustainability investments, and precision farming technologies, with valuations assessing both tangible assets and tech-driven upside.
Target Audience: How We Support You
Whether you’re a CFO navigating complex financial disclosures, an investor evaluating risk and upside potential, or a legal advisor structuring deal terms, our convertible instrument valuation services in Singapore are tailored to support your unique objectives. At ValueTeam, we combine technical accuracy with business insight to ensure every valuation meets professional standards and real-world needs.
CFOs & Finance Teams
We support finance leaders with accurate and compliant valuations under FRS 109 accounting standards. Our valuations improve transparency in financial statements, strengthen audit readiness, and inform management decisions regarding funding and financial instruments.
Investors
Our valuation services help investors understand yield-to-maturity, conversion value, and the risk-return profile of convertible instruments. We provide clarity on downside protection and equity upside, enabling informed portfolio decisions and fair pricing.
Legal & Corporate Advisors
Legal professionals rely on our valuations to ensure fairness in contractual terms, validate conversion conditions, and support enforceable agreements. We also assist in benchmarking instrument terms for negotiation and compliance.
Audit & Assurance Professionals
Auditors benefit from our independent and well-documented valuation reports, which provide clarity on classification, embedded features, and fair value determination. We help streamline audit workflows and reduce time spent on valuation challenges.
Startups & High-Growth Companies
We help startup founders and CFOs navigate valuation requirements linked to fundraising events, cap table planning, and investor term sheets. Our services ensure fair, transparent, and investor-ready documentation.
Private Equity & Venture Capital Firms
We work closely with private capital investors to evaluate convertible instruments within deal structures, monitor performance, and comply with portfolio valuation policies.
Compliance Officers & Risk Managers
Valuation reports tailored for regulatory scrutiny support filings with ACRA, IRAS, and MAS. We offer models built to meet local and international financial reporting and compliance expectations.
There is also the output and that’s the present value of the conversion option, considering market volatility and time value of money
EXPERIENCED TEAM
We are a team of finance professionals with more than 20 years of experience in the valuations industry.
COMPETITIVE PRICING
We provide our clients with quality Compulsorily Convertible Preference Share valuation services that meet their budgets.
INDUSTRY STANDARD
We follow the best industry practices and approach to give our clients the best services and results.
OUR SERVICES
Warrant Valuation
We offer expert valuation solutions using our knowledge and understanding of the latest market trends and standards. We are best placed to meet all your expectations.
Compulsorily Convertible Preference Share (CCPS) Valuation
Our CCPS valuation techniques can nullify the mismatches in valuation expectancies between investors and promoters. Contact Valueteam for in-depth valuation advice.
Optionally Convertible Preference Shares (OCPS) Valuation
We employ the latest methodologies and software in OCPS valuation. Rely on us to meet all your best convertible instruments valuation requirements.
PROCESS
Valueteam is your one-stop shop for all your valuation needs. We can evaluate a range of assets, including tangible and intangible assets, and across numerous industries. Valueteam comprises a group of industry experts who are dedicated to offering the best valuation services to clients. We strive hard to meet client expectations.
SCOPE FINALISATION AND CONSULTATION
Connect with us to get a free consultation to discuss your business requirements. Our Service management team will draft a consolidated and efficient scope. We will help you choose the right valuation package.
DETAILED ANALYSIS
We gather and analyze qualitative and quantitative data on your convertible instruments that need to be valued. We do a detailed and comprehensive analysis of all information and data to understand various factors that impact and drive the convertible instrument valuation.
APPLY
After a detailed analysis, we apply our unique and propriety valuation methodology to value the convertible instruments of the company. With our experience and unique valuation methods, we aspire to estimate the real value of convertible instruments.
REPORTS
We issue a detailed valuation report, including instrument analysis, value drives, assumptions, risk, and final valuation. These are clear and transparent reports with in-depth analysis and the reasons for our results and conclusions.
OUR VALUATION APPROACHES
BINOMIAL OPTIONS PRICING MODEL (BOPM)
We use the BOPM approach to estimate the appropriate current price on a given day for an anticipated future payoff. The BOPM model is extensively employed because of its ability to deal with many conditions.
MONTE CARLO TECHNIQUES
We apply the latest Monte Carlo techniques in valuing the different instruments with the help of quasi-Monte Carlo simulation and the conventional Monte-Carlo simulation. We also use the Monte-Carlo simulation in measuring the risks involved.
BLACK–SCHOLES MODEL (BSM)
We use the BSM model in valuing the stock options. It is instrumental in determining fair prices of stock options based on variables, including volatility, type, actual stock price, strike price, time, risk-free rate, and read more.
HOW DOES VALUATION HELP YOUR BUSINESS?
Benefits of valuing a business
Business valuation can help you to buy or sell a business with ease, discuss better terms with the buyers or sellers of the company and choose the right time for selling or buying a business.
Stimulate Growth
Periodic valuation is a good practice because it helps you evaluate and appraise your business functioning; uncover business areas that need improvement, and quickly raise capital for your business.
CONVERTIBLE INSTRUMENTS VALUATION SERVICES
The valuation of convertible instruments can be a complicated process. Even the most minor complication in these instruments can lead to accounting shocks and unanticipated earnings instability.
To achieve control over these instruments, Valueteam can assist you to:
- Assess the incremental debt service savings applicable to the conversion feature;
- Create fair value estimates for financial reporting functions;
- Ascertain the interface between numerous components of the convertible instrument and the influence of these on earnings per share;
- Check different combinations of stock and bonds for hedging convertibles;
- Study how modifications in parameters, such as interest rate or share price, can influence future valuations and equity components from there.
- Offer the valuation solutions and core valuation model keystones to your external auditor to help them carry out their audit processes.
WHEN SHOULD A COMPANY TAKE UP CONVERTIBLE INSTRUMENTS VALUATION?
WHAT PROTOCOLS DOES VALUETEAM FOLLOW IN THE VALUATION OF PREFERRED STOCKS?
WHY ARE CCPSS BECOMING POPULAR?
WHAT ARE OCPSS?
WHEN IS THE VALUATION OF CONVERTIBLE INSTRUMENTS REQUIRED?
M&A VALUATION
We assist in the valuation of target companies, PPA, and EPS analysis, both pre and post-transaction.
INTANGIBLES VALUATION
We provide all kinds of intangibles like patents, trademarks, IPs etc valuation services for our clients.