Supportable Common Stock Valuation for Equity Compensation
The Valuation Group provides 409A valuation reports for privately held companies requiring supportable common stock valuation conclusions for stock options, equity compensation, board approvals, investor reporting, and related corporate purposes.
Our work supports CFOs, controllers, boards, founders, investors, attorneys, CPA firms, auditors, and advisory teams involved in private-company equity compensation and financial reporting matters.
Why The Valuation Group
409A valuation assignments require more than applying a generic discount to a recent financing round. The valuation must address the company’s capital structure, preferred and common stock rights, financial performance, expected cash flow, market evidence, volatility, liquidity, stage of development, and company-specific risk.
Our 409A work is built around the facts that drive common stock value: enterprise value, capital structure, preferences, liquidity expectations, market evidence, company-specific risk, and the rights attaching to each class of equity.
We provide valuation analysis for private-company common stock where the company has issued or intends to issue stock options, restricted stock, equity incentives, or other compensation tied to common equity value.
Our analysis may address enterprise value, equity value, capital structure, preferred stock preferences, common stock rights, option-pricing considerations, expected liquidity events, financing history, and market participant assumptions.
409A valuation work often supports stock option strike prices, equity compensation planning, board documentation, and compensation-related financial decisions.
Our reports are organized so management, advisors, auditors, and other professional users can see how the conclusion follows from the company facts and the valuation evidence.
We provide 409A valuation support for early-stage companies, growth companies, established private businesses, family-owned companies, professional service companies, and privately held companies with complex ownership or capital structures.
Our work can address companies with limited operating history, recent financing rounds, convertible securities, preferred equity, changing revenue models, or anticipated transaction events.
Related Valuation Issues
ASC 718 Stock
Compensation Valuations
Equity compensation arrangements may require additional valuation support for stock options, restricted stock, profits interests, phantom equity, or other stock-based compensation instruments.
ASC 820 Fair Value Measurement Support
Fair value measurement issues may arisewhere private-company equity, complex capital structures,
or other assets and liabilities require
valuation analysis.
Transaction-Related Business Valuation
Recent financing rounds, acquisitions, recapitalizations, or planned exits may affect the valuation assumptionsand analysis.
