409A Valuation Report

Price - $3,250
Turnaround Time - 15 Business Days A 409A valuation is an independent appraisal of the fair market value of a private company's common stock, conducted in accordance with Section 409A of the Internal Revenue Code. This valuation is essential for companies that issue stock options or other equity-based compensation to employees, as it determines the exercise price of the options to ensure they are not subject to additional taxes and penalties. The 409A valuation takes into account various factors, including the company's financial performance, market conditions, and comparable company valuations. It provides a defensible and IRS-compliant valuation of the company's common stock, ensuring fair and accurate pricing of equity compensation.

When do you need a 409A Valuation?

Issuing New Stock Options: Before granting new stock options to employees, you need a 409A valuation to determine the fair market value and set the exercise price.

Raising Capital: Each time your company raises a new round of financing, you should get a new 409A valuation to reflect the updated value of your company.

Significant Changes in Business: Major changes, such as mergers, acquisitions, or significant shifts in business operations or financial performance, may necessitate an updated 409A valuation.

Annual Updates: It is recommended to update your 409A valuation at least once a year to remain compliant with IRS regulations.

 

Our analysts will gather, analyze and adjust the relevant information necessary to perform a valuation appropriate to the nature or type of the engagement. Such information shall include:

  1. Date of Valuation;
  2. Standard of Value;
  3. Nature, history, and outlook of the business;
  4. Capital Structure;
  5. Industry outlook;
  6. Economic factors affecting the business;
  7. Company Ratio Analysis;
  8. Normalizing adjustments to financial statements;
  9. Officers’ Compensation Adjustments;
  10. Detailed review of the balance sheet;
  11. Nature and conditions of relevant industries that have an impact on the business;
  12. Marketability and Minority Discount;
  13. Reconciliation of estimates of value and value of interest appraised;

What information is needed to perform a Certified Business Valuation?

  1. Profit and loss statements, balance sheets, or tax returns for the last four to five years.
  2. Interim profit and loss statements and balance sheets for the current year.
  3. Copies of any forecasts or projections.
  4. Completed Questionnaire (provided by us).
  5. We may request additional documents during the valuation process.

Request more information

If you would like to learn more about the 409A Valuation process, please fill out the form below, and one of our advisors will get in touch with you as soon as possible. After filling out the form, you’ll receive a sample report and all other essential information regarding our valuation process.

Privacy Statement: Swift and Wise, LLC is the sole owner of the information submitted. We will never sell, share, or rent this information to others.