Business Valuation
Valuations that hold.
Under any scrutiny.
A 409A from a generic online tool will not survive an IRS challenge. An M&A valuation from an inexperienced firm will not survive investor due diligence. Ours do — because we build them to.
What's included
Our valuation practice covers the full spectrum of business valuation needs — from the routine annual 409A to complex M&A transaction support and financial reporting valuations. Every engagement is led by credentialed professionals (ASA or CVA certified) with deep experience in early-stage and growth-stage company valuations.
For 409A valuations, we use the methodologies prescribed by the IRS: the income approach, the market approach, and the Option Pricing Method for allocating value to common shares in complex capital structures. The final report documents our assumptions and conclusions in detail — sufficient to meet the IRS reasonable cause standard and withstand audit scrutiny.
For M&A and transaction support, we can serve as the financial advisor on the sell side, provide an independent fairness opinion, or prepare the purchase price allocation post-close. Each engagement is scoped specifically to your transaction's requirements.
Who this is for
Companies issuing stock options or restricted stock who need an IRS-compliant 409A valuation. Companies in M&A processes — as buyer or seller — who need independent financial analysis. Companies that have completed acquisitions and need purchase price allocations for financial reporting.
Also appropriate for companies preparing for an institutional fundraising round who want an independent view of their valuation before entering negotiations — knowing the independent value before you sit across from a VC changes the conversation.
Frequently asked questions
A 409A valuation is an independent appraisal of the fair market value of your company's common stock, required under Section 409A of the US Internal Revenue Code before you can grant stock options at that strike price. You need one whenever you want to grant options to employees or advisors, and it must be updated at least annually or whenever a material event occurs (fundraising, significant revenue change, etc.). Issuing options without a current 409A valuation can result in severe tax penalties for option holders.
Our standard turnaround is 10–15 business days from the date we receive all required information — cap table, financial statements, recent fundraising materials, and a business description. We can expedite for an additional fee if you are under time pressure from an option grant deadline.
Yes. Our valuations are prepared by credentialed professionals using established methodologies — typically a combination of the income approach (discounted cash flow), the market approach (comparable transactions and public company multiples), and the Option Pricing Method for allocating enterprise value to common shares. We document our methodology, assumptions, and conclusions in a report that meets the IRS reasonable cause standard.
We need: a fully diluted cap table (or shareholder register), financial statements for the last 2–3 years (or since inception if younger), the most recent investor presentation or business plan, any recent term sheets or financing documents, and a description of the company's products, customers, and competitive position. We'll provide a detailed checklist at the start of the engagement.
Yes. We provide fairness opinions and transaction support valuations for M&A processes — whether you are the buyer or the seller. We also prepare purchase price allocations (ASC 805) for completed acquisitions, which are required for financial reporting purposes when a business combination occurs.
Book a free strategy call
30 minutes. We'll scope the valuation you need and give you a timeline and fee estimate.
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