What Information is Required for a 409A Valuation?

To perform a 409A valuation, it is important that we get a full and complete picture of your company. We are calculating how much someone would pay for 1 share of common stock, so we seek to understand all the key facts that an investor would.

To arrive at the value for your 409A, we first determine the valuation of your company as a whole. Next we allocate the correct portion of that total company value to each class of shares including the common stock. Lastly we determine if a discount for lack of control or marketability should be applied, and if so, how large the discount should be.

To accurately appraise your company, we need to collect company background information, financial information, and company ownership information. When you are ready to start your 409A valuation, we collect the necessary information using a secure and convenient web form. The better prepared you are with your documents when you fill out the form, the faster we can complete your 409A valuation report.

The complete list of required documents can be found here.

Company Background

We will ask you to provide some general information about your company in paragraph form. What does your business do? How does it make money? If it doesn’t have any revenue yet, how does it plan to make money? Who are your main competitors? What are the dynamics of the industry? This information helps us determine the way in which we will approach the 409A valuation for your company.
To understand your company better we will also ask you about the key individuals behind the company.


In order for us to calculate the value of your company, you will need to provide the financial statements for your company. These include 5 years of balance sheets, income statements, and cash flow statements. If your company has been in business for fewer than 5 years, then we need all the financials since incorporation. We will also need year to date financial statements and a trial balance up to the valuation date. If your company has any subsidiaries, you will need to submit financial statements for subsidiary companies as well.

If your company has significant revenues, then we will need projected revenue, expenses and tax rate for the next 5 years. We will use this information to do a discounted cash flow calculation.

We will also need to collect information about the financing of your company. If you have raised equity or convertible debt, you will need to submit the terms and associated documents from that investment. Specifically, we need to know the valuation, the number of shares issued, and any special rights such as liquidation, dividends, voting rights and others. We will need to know about any long term or short term debt the company holds. If you have had a 409A valuation before, you will be asked to submit all previous valuation reports.

Company Ownership

Once we calculate the valuation of your company, we determine the correct allocation of value to the different share classes, and then determine the discount to be applied to the common stock value. To do this, we need your articles of incorporation and bylaws, and your capitalization table.

Are you ready to start your 409A valuation? Contact us, and one of our appraisers will be in touch and we can get your valuation started.

Get Your Professional Valuation Started Now

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