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Does My Company Need a 409A Valuation?

Have you heard of IRC Section 409A and wondered if it applied to your company? Do you think you might be in need of a 409A valuation but are unsure? Most entrepreneurs have never heard of IRC Section 409A , if you haven’t then check out…
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My company is based outside of the United States, do I need to worry about IRS Section 409A?

Are you looking to hire a U.S. citizen? Are you thinking of opening an office in the U.S.? If you answered yes to either of these questions and are considering issuing deferred compensation (for example stock options or restricted stock units)…

How do I determine fair market value for an 83b election?

If you already know you need to file an 83b election then the first question you probably have is how do I determine the fair market value of the “property” for the election? There are a few ways to go about determining the fair market…

What certifications are required to be qualified to issue a 409a valuation?

Are there mandatory certifications? Can anyone issue a 409a valuation? There are no mandatory certifications to perform a 409A valuation, but the IRS does require that an appraiser have significant knowledge, experience, education and training.…

Valuation Methods – The Asset Approach

The asset approach is one of the three approaches (along with the market approach and income approach) used to estimate enterprise and equity value, and is used in IRC 409A valuations.  The asset approach is defined in the International Glossary…

How Long Does a 409A Valuation Take?

The time to complete a 409A valuation can range significantly: from a few days to a few months - mostly depending on the needs and the situation of the client. To get an idea of how the completion time of a 409A appraisal can vary so dramatically,…

Valuation Methods – The Income Approach

The Income Approach is one of the three approaches (along with the Market Approach and Asset Approach) used to estimate enterprise and equity value. The income approach seeks to identify the future economic benefits to be generated by an entity…

409A Valuation Report Components - Industry and Competitor Analysis

The industry and competitor analysis portions of a 409A report review a company’s current market position and assess the environment in which the company is operating. This allows for the valuation of the company to be considered in the operating…

Do Employees Have to Worry About 409A Penalties?

Sadly, yes. We have covered in other articles the importance of companies meeting safe harbor requirements for 409A by getting a qualified third party 409A valuation, but this regulation is also of great concern to employees. The implications…
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409A Valuation Report Template

There is really no ‘template’ for a 409A valuation. Section 409A came into being in 2007 and a cottage industry has sprung up to satisfy the reporting requirements, but the IRS has not given a lot in the way of definitive guidelines of what…