Clear Rating is a valuation and securities rating company. We focus primarily on company valuations, ESG ratings, and securities ratings founded on the principles of "Transparency, Truth, and Trust". We work to bring clarity to securities that are private or illiquid.

Clear Rating primarily serves private securities issuers, professional service firms, investment funds, and alternative trading systems by providing objective and independent assessments. Other beneficiaries include Boards of Directors, regulators, and bankers.

Clear Rating allows management teams to articulate the strengths of their company or project with concise descriptions and data-driven conclusions. Moreover, Clear Rating educates stakeholders, informs secondary markets, and provides seamless updates as businesses mature.

Clear Rating functions through a simple and sophisticated digitized platform that allows clients to submit source documents, communicate directly with their analysis team, and request and receive updates to their valuation. On the backend, Clear Rating uses proprietary data analysis tools that harness artificial intelligence and big data to provide comprehensive, reliable, and intellectually honest assessments.

Clear Rating is the market leader in providing thorough independent reports based on deep market knowledge and statistical evidence. Our technology infrastructure, experienced valuation team of CPAs and CFAs, and seamless operations process allow us to provide our services at a fraction of the time and cost of other valuation and rating providers.

The current process of receiving company valuations and ratings is riddled with high costs and slow turnarounds. Clear Rating leverages its software and experienced analysis team to make this process more efficient. These costs and energy savings are then passed onto our customers. We have no doubt that our clients love the quality and timely service they receive. Our testimonials say it all. 

Since Clear Rating provides valuations and ratings of equity interests, not credit, we do not require certification from the Securities and Exchange Commission(SEC) as a nationally recognized statistical rating organization (NRSRO).

Absolutely. Our subscription service allows users the option to have their reports updated quarterly, bi-annually, annually, or on request at any other time in preparation for an upcoming material event.

There are three primary ways to kickoff the Clear Rating process:
‍1. Fill out the Contact page
2. Email us at office@clearrating.com
3. Callus at +1 (713) 823-2900

The Engineered Solutions Carbon Index (ESCI) is a benchmark created by Clear Rating for tracking the prices of carbon credits derived from engineered solutions such as Carbon Capture, Utilization, and Storage (CCUS), Direct Air Capture (DAC), and Bioenergy with Carbon Capture and Storage (BECCS). These credits are gaining prominence as the voluntary carbon market (VCM) shifts away from nature-based solutions toward more technologically driven methods of carbon sequestration and reduction.

The ESCI was developed to address the growing need for a standardized and transparent pricing mechanism for engineered solutions credits in the voluntary carbon market. As engineered solutions are expected to dominate the market in the coming years, Clear Rating designed this index to fill the gap in price benchmarking for these credits, allowing investors and project developers to better understand and track the market.

Engineered solutions are technological methods designed to capture, store, or reduce greenhouse gas emissions. These solutions include technologies such as CCUS, BECCS, DAC, and biochar, which offer more durable and scalable approaches to mitigating climate change compared to traditional nature-based methods like reforestation.

While most carbon credit indices include a mix of nature-based and engineered solutions credits, the ESCI focuses solely on engineered solutions. This focus allows for a more accurate representation of the technological and cost challenges specific to engineered carbon credits. The ESCI's methodology also includes market share weighting and regular rebalancing based on technological advancements and transaction volume, which is unique to its construction. 

The ESCI plays a critical role in the voluntary carbon market by providing transparency and consistency in the pricing of engineered solutions credits. As the market matures and engineered solutions gain a larger share, the ESCI will help guide investments, inform pricing strategies, and ultimately support the growth of these technologies in the effort to combat climate change.

The pricing basket of the ESCI is a collection of engineered solutions carbon credits, weighted by their market share, to create a standardized benchmark price. The basket allows market participants to understand the average price of engineered carbon credits in the market, which can fluctuate based on supply, demand, and technological advancements.

Initially, the ESCI will be updated on a weekly basis. However, Clear Rating expects limited movement in the weekly index price until 2025, when the volume of engineered solutions credits is expected to increase significantly. As the market matures, the frequency of updates may increase to reflect more dynamic price movements.

Data transparency is a core principle of the ESCI. Clear Rating ensures transparency by sourcing market data from primary transactions, validating the information through detailed project reviews, and providing a clear methodology for how the index is calculated. This transparency allows market participants to have confidence in the accuracy and reliability of the ESCI.

The ESCI is rebalanced quarterly to account for changes in market conditions, technological advancements, and the availability of new data. This ensures that the index remains accurate and reflects the latest trends in the market. As the transaction volume for engineered solutions credits increases, the ESCI will adapt to include more granular data and provide a more robust pricing benchmark.

The ESCI addresses several challenges in the voluntary carbon market, including the lack of standardization, variability in the quality of credits, and the absence of transparent pricing information. By providing a clear benchmark for engineered solutions credits, the ESCI helps reduce information asymmetry, making it easier for investors and project developers to navigate the market.

Engineered solutions credits tend to be more expensive than nature-based credits due to the high costs associated with the technology, infrastructure, and energy requirements needed to capture and store CO₂. Additionally, the complexity of engineered solutions projects such as DAC and CCUS often requires significant upfront investments, further driving up the cost of these credits. Because of the high quality associated with these projects, project developers are able to demand a higher price from buyers as compared to nature-based credits.

The ESCI provides investors with a reliable and transparent benchmark for pricing engineered solutions credits, helping them make informed decisions about where to allocate capital. By standardizing prices and offering a clear methodology for credit valuation, the ESCI reduces the uncertainty that often plagues the voluntary carbon market, making it easier for investors to assess the risks and rewards of different carbon credit projects.

The key advantages of the ESCI include its focus on engineered solutions, its transparent methodology, and its regular updates based on the latest market data. The ESCI helps to improve market efficiency by providing a clear and consistent benchmark for pricing engineered carbon credits, which is crucial for encouraging investment in these technologies. 

The main risks associated with engineered solutions credits include high upfront costs, technological complexity, long lead times for project development, and potential regulatory changes. Additionally, the market for engineered solutions is still in its early stages, which means that transaction volumes are relatively low and there may be volatility in credit prices.

The ESCI is reported to the public through Bloomberg, where it is updated on a weekly basis. As the market matures and more data becomes available, the frequency of updates may increase, allowing for more dynamic price tracking. Clear Rating is responsible for ensuring that the data used in the ESCI is accurate and up to date, providing market participants with reliable pricing information.

The ESCI accounts for pricing variability by incorporating a Price Δ for each category of engineered solutions credits. This range reflects the differences in technology, project size, location, and other factors that can influence the cost of generating carbon credits. As the market matures and more data becomes available, the index will adjust these price ranges to provide a more accurate reflection of market conditions.

Yes, the ESCI is designed to serve as a reliable benchmark for trading engineered solutions carbon credits in the voluntary carbon market. By providing a transparent and standardized pricing index, the ESCI enables market participants to trade credits with greater confidence, knowing that the prices are based on accurate and up-to-date market data.

By providing a standardized and transparent pricing benchmark for engineered solutions credits, the ESCI encourages investment in technologies that capture, store, and reduce CO₂ emissions. These technologies are essential for achieving long-term climate goals, such as net-zero emissions, by providing scalable and reliable solutions for mitigating climate change.

The ESCI is specifically focused on engineered solutions, providing a unique and detailed benchmark for this segment of the carbon market, unlike other indices that may include a broader range of carbon credit types.

The main drivers of growth in the engineered solutions market include regulatory changes, pressure from institutional investors, and the increasing need for large-scale technologies that can achieve significant carbon reductions. Government policies, such as tax credits for carbon capture technologies, are also playing a critical role in accelerating the development of engineered solutions.

Biochar is a stable form of carbon produced through the pyrolysis of organic material, which can be used to sequester carbon in soil. It also improves soil health, making it a valuable tool for both carbon sequestration and agricultural productivity. Biochar is important in the ESCI because it offers long-term carbon storage and provides co-benefits to the agricultural sector, contributing to its market share in the index.

As the voluntary carbon market evolves and more data becomes available, the ESCI will continue to adapt to reflect new technologies, increased transaction volumes, and changes in market dynamics. Clear Rating will review and rebalance the index on a quarterly basis to ensure that it remains an accurate and up-to-date benchmark for pricing engineered solutions credits.   

1. Client visits our website and completes the form on the Contact page
2. Client enters information about who they are and what services they desire
3. Client is matched with an analysis team in charge of its valuation
4. Client submits onboarding documents
5. Clear Rating analysis team completes the valuation
6. Client and Clear Rating discuss the findings and address any questions or concerns
7.As the client's business matures the Clear Rating database receives updates which the client can elect to use and enhance the accuracy of its valuation

The three financial statements (balance sheet, income statement, and cash flow statement) for the past five years. If the entity has not been in business for five years, then records from its inception. Also typically requested is a business strategy deck and any major events such as M&A or sales of assets.

One week. The analyst may often need clarification and have questions so prompt communication is important during this time to avoid delays.

Valuations provide a snapshot of a company's financial health, offering insights that help stakeholders understand their financial position in the marketplace. This information is pivotal for making informed business decisions such as merger sand acquisitions, fundraising, financial reporting, strategic planning, and even for personal investment decisions.

The optimal moment to consider selling your company often aligns with periods of increasing profits and revenues. Specifically, if your company has robust Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) and positive free cash flow, it may be a good time to explore a sale. Also, it's beneficial to sell when there is significant demand for businesses like yours in the industry.

‘Adjusting EBITDA' involves making certain modifications to your Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Typically, this includes adding back non-cash items and compensation expenses, considering the cost of are placement if you were to step down, and then making corresponding subtractions.

EBITDA multiples are a valuation metric, typically ranging from 3 to 7 or 8 times the EBITDA. They are commonly used for companies with revenues between $5M and$100M. However, these multiples can vary by industry and usually increase with the size of the company.

Continue to operate as if you plan to retain your business for several more years. Maintain a focus on growth and healthy profit margins. Remember, the top reason deals fall through is due to a decline in sales or performance.

The market ultimately determines the final price. To prepare, it's essential to go through a thorough valuation process.

The primary reason deals fail is material surprises in due diligence. Disclose facts, even small operational things like if workers are W2 or 1099, to the analyst in the valuation process and there will not be surprise hiccups later down the road.

Around a third of businesses disclose the sale to key employees. Retention of talent is crucial during an ownership transition, so consider implementing incentives for staff to remain onboard.

Although roughly 25% of sellers are familiar with their buyers in advance, most transactions occur with buyers who were previously unknown.