Changes

Providing valuations to clients is a major business task for SVB Analytics. Valuations of portfolio companies by funds are required to be done at an arm's length and to use 'fair market values', to comply with [http://www.fasb.org/summary/stsum157.shtml FAS 157], annually. Likewise , annual valuations are required for the firms themselves to comply with [http://en.wikipedia.org/wiki/Internal_Revenue_Code_section_409A Internal Revenue Code 409A] . Valuations are also required whenever there is 'trigger event', such as the issuance of stock options. However, but clearly not all clients of the bank (or all firms in the industry) use SVB for this purpose's valuation services.  Valuations are also required whenever there is 'trigger eventdone using templated Excel spreadsheets. The sheets have the following elements:*The header: States the firm's name, such industry and other information*Financial Info:**Actual - Taken from past annual statements**Calculated - Ratios and other calculated variables**Forecast - Annual forecasts for the next 1-3 years (typically). These forecasts are certified as accurate by the CEO.*Capital Structure of the Firm (may be drawn from CapMx)*Public Comparables: Lists comparable publicly held firms. The CEO acknowledges the comparability.*Summary of Valuation: Details the methods tried and (in which blend) used. Gives the equity value and hence the price per share.*Valuation Methods: Details the issuance calculations of stock optionsthe various valuation methods. Methods include:**CVM (Current Value Method), a.k.a.Multiples Analysis (uses M&A Comparables)**Net Present Value (NPV) of future discounted cash flows**Weighted Average Cost of Capital (WACC)**PWERM (Probability Weighted Expected Return Method)**OPM (Option Price Method)