Enterprise Valuations helps companies and individuals that need independent valuations of their businesses, assets or equity securities for tax, accounting or other corporate purposes. Our team of senior valuation professionals applies its unique combination of business valuation expertise and extensive business and corporate finance experience to provide realistic, cost-effective solutions to your real-world valuation problems.
Our core valuation practice involves the valuation of private company equity securities (common and preferred stock) for purposes of IRC §409A, FAS 123(R) and other tax and accounting purposes. Obtaining periodic independent common stock valuations is advisable for any private company that uses stock options to motivate and compensate its employees and wants to avoid:
- Adverse tax consequences for its option holders (as well as potential payroll tax and withholding violations by the company), and
- Accounting complications that increase the cost and time required to complete the company’s annual financial statement audit.
Read more about IRC §409A and FAS 123(R) to understand the potential pitfalls for the company and its option holders.
We determine the value of private company common stock by applying generally accepted valuation principles and methodologies (including those described in the applicable AICPA Practice Aid for valuing private company stock). The results of our analysis are documented in a thorough valuation report that the company can use if the IRS attempts to impose 409A penalty taxes on your option holders or if your independent auditors require evidence of the common stock’s value in connection with the audit. In addition, if tax or accounting issues arise related to our valuation, we provide follow on services to assist the company as needed.
Since our founding at the beginning of 2006 we have completed hundreds of 409A/123(R) common stock valuations for a broad range of private companies.
Because of our extensive knowledge of the requirements (many of which are unwritten and can be learned only through experience), we can also advise you regarding best practices and strategies to manage through and around the potential problems that might otherwise arise for your company and option holders with respect to 409A and 123(R).
In addition to our private company equity valuation services, we also offer valuation and related services for a variety of other tax, accounting and corporate purposes.
I hope the information you’ll find on our web site will help you better understand our capabilities and the ways that we can help your company address your 409A, 123(R) and other business valuation issues. If you do not find the answers to your questions or you want to discuss detailed terms and prices for our services, please contact me.