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…
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I’m Ready To Get a 409A Valuation. What Documents Do I Need to Provide?

You will need to provide a fairly extensive list of documents. The following is an overview of what you will be expected to provide to fullfill 409A valuation requirements. It is not necessarily an exhaustive list, as your appraiser may ask…