409A Valuation Services
409A Valuations for Private Companies
Independent, defensible 409A valuations for stock option pricing, compliance, and equity planning.
Business Valuation CPA, P.L., provides independent valuation services for private companies, founders, boards, and advisors who need a well-supported fair market value analysis under IRC Section 409A.
🔷 Introduction
A 409A valuation helps establish the fair market value of common stock for private companies issuing stock options or other equity-based compensation. A properly prepared valuation can help companies support option-pricing decisions, strengthen documentation, and reduce the risk of noncompliance.
Whether your company is early stage, growing, or preparing for a financing event, an independent 409A valuation can provide a clear and supportable framework for board and management decisions.
🔷 Who This Page Is For
This service may be appropriate for:
- Private companies issuing stock options or other equity compensation
- Founders and management teams needing an updated 409A valuation
- Companies following preferred stock financings or material changes in operations
- Boards, CFOs, controllers, and legal advisors seeking independent valuation support
- Clients evaluating broader equity planning issues involving private company shares
🔷 What a 409A Valuation Covers
A 409A valuation generally includes analysis of:
- The company’s capital structure
- Common stock versus preferred stock economics
- Recent financings and secondary transactions
- Financial condition and operating outlook
- Market-based valuation evidence
- Allocation methodologies such as OPM, PWERM, or related approaches, when appropriate
- Company-specific risk factors, liquidity considerations, and relevant discounts
Each engagement depends on the company’s facts and circumstances, stage of development, and available data.
🔷 Independent Valuation Support
Business Valuation CPA, P.L. provides:
- Independent valuation analysis
- Clear, structured reporting
- Support for management, legal counsel, and tax advisors
- Experience with fair market value issues, control considerations, and marketability analysis
- A practical, professional process tailored to privately held companies
🔷 Equity Planning and Related Structures
- For some clients, 409A-related work connects with broader equity planning. Private company shares may be contributed to an FLP or LLC, followed by a transfer of non-controlling interests to trusts such as a GRAT or IDGT, with valuation support addressing fair market value under IRC §2512 and the effects of control and marketability.
These situations are highly fact-specific and typically require coordination among valuation, legal, and tax advisors.
Related valuation support may include:
- FLP or LLC interest valuations
- Discount analysis for lack of control and lack of marketability
- Coordination with estate planning counsel and other advisors
🔷 Why Clients Engage Business Valuation CPA, P.L.
- Independent, supportable analysis
- Clear communication and structured reporting
- Experience with tax-related valuation issues
- Thoughtful coordination with attorneys and advisors