409a Valuation, Stock Option Valuation, or Appraisals

Because we understand regulatory constraints and the particular challenges that private growth companies face, we are uniquely qualified to meet our client's valuation objectives. We also bring years of valuation experience to the table. Our valuation leadership team is composed of former CFOs, private equity professionals, and financial consulting experts.

It has become clear now that 409a valuations (or stock option valuations or appraisals) can be performed by a "qualified" finance professional at the company, rather than spending $5,000-$10,000 with a 409a valuation firm. The key is proving that a person is qualified. If the person has sigificant finance experience, has at least 5 years of experience, and has performed valuations previously or is a finance expert in the company's specific industry, the person is very likely qualified. The IRS ultimately has to prove that a valuation was "grossly unreasonable" to have a case against a company. However, there are definitely cases where a company should have a complete 409a valuation perfomed. If a company does not have an internal finance professional who is qualified, it should outsource this work to a specialized firm. Also, if a company likely to have a change of control in the near future--e.g., within 90 days--getting a full-blown valuation by an independent appraiser is recommended. You can get the latest information on this topic here or here

Venture Returns provides our customers with a full set of support offerings ranging low-cost assisted valuations at $199.00 to full-blown 409a valuation reports for between $2,500 and $4,500.

1. Assisted Valuations. For $199, at VR professional can help make sure you get a complete set of industry comparables that include both public and private comparables and assist you in creating your own valuation worksheet or using one of VR's standard valuation templates. Click here to get started now.
2. Full-blown 409a Valuations. For those of you that want the strongest protection against IRS investigation, do not have a qualified internal finance professional, and / or are planning on a liqudity event in the near future, we recommend a full-blown valuation. VR performs full-blown valuations at prices ranging from $2,500 to $4,500 depending on the complexity of the valuation. We guarantee you will not find better pricing. We can offer this pricing by working with individual appraisers rather than firms and using valuation our proprietary valuation database and software that speeds the work of finding comparables. We continuously monitor changes to 409a policy. All of our opinions are supported by thorough analysis by performed by highly qualified teams. These opinions are designed from the beginning to be defensible and to withstand scrutiny by financial experts, regulatory bodies, the IRS, auditors and your own CFO. Click here to request a quote and get started.

Each of our engagements comes with free access to our proprietary web software. This will allow you to see an ongoing estimate of your company's valuation based on the daily movement of public comparables stock prices and M&A transactions. We think of this as the Zillow.com of private companies.