Tag: 409A Valuation

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409A Valuations: Everything that Executives Should Know

A 409A valuation determines the fair market value (FMV) of a private company’s common stock as determined by a third-party appraiser. Startups require 409A valuations in order to provide employees tax-free stock options. The 409A valuation defines a company’s common stock’s base price, which is used to determine the price at which workers can exercise … Continued

How do high valuations affect your 409A valuation?

A 409a valuation is important because it establishes the fair market value of your company’s shares in writing. A 409a valuation, if done correctly, can help you comply with tax regulations and avoid unnecessary IRS audits that could lead to major problems down the road. Perhaps even more importantly, a 409a valuation provides your management … Continued

Creating ESOP for your Startup: How a 409A valuation can help?

The term “409A value” is derived from Section 409A of the United States Internal Revenue Code, which governs nonqualified deferred compensation schemes (e.g., stock options). The legislation compels private corporations to set an exercise price for their stock that may never be less than the FMV of the underlying stock on the date the stock … Continued

How 409A Valuation Determines your Stock Options Strike Price?

When corporations grant stock options, which are critical for attracting talent, how can they determine the value of common shares? A privately owned corporation’s only option for providing tax-free options to its employees is to use a 409A valuation. In this article, we explain how to determine the strike price of stock options using a … Continued

Do Venture Capitalists Use a 409A Valuation to Value a Startup?

Is your 409A value different from the venture capital appraisal done by your investor, and you’re not sure why? VC valuations and 409A valuations are extremely distinct from one other, even though this may not be widely known. In reality, 409A values are point estimates at the lower end of a defensible valuation range compliance … Continued

409a Valuation from Eqvista: Top Choice for Startups and Lawyers

Have you gotten a business valuation yet? Maybe you don’t know what business valuations are and why you might need a 409A valuation. Well to begin with, a business valuation is a process of finding out the economic value of your company. In short, it helps you get the fair market value of the business, … Continued

Get Your Company 409a Valuation Service with Eqvista

Setting up a company is just one part of starting your business. When a company starts off, they are not worth much and are often cash strapped, so it’s tough to give good salaries to hire the best talents in the industry. In such a situation, it is normal for the company to compensate the … Continued

Interview with Nathan Krishnan, 409a Valuation Expert, Eqvista

Today we’ve Nathan Krishnan, who recently joined the Eqvista team as a valuation analyst specialized in 409a valuations and early-stage valuations. We got a chance to have a quick chat with him to talk about his experience in the field of business valuations and many more. First of all, Welcome to Eqvista team, Nathan 🙂 … Continued

409a Valuation: Understanding the process simply

We understand that the last thing any start-up wants to worry about is tax compliance, especially when you have so many other things to worry about. Like product development, sales, recruiting, etc. But it is wise for a start-up to think about compliance early on to avoid potential penalties and distracting complications from lack of … Continued

How Can Eqvista Help Manage Shares?

Launching a company brings with it a lot of responsibilities for an entrepreneur. One of the greatest troubles is to manage the shares in the company. A share in the company represents the ownership of the company, and being an owner means you need to issue and manage shares properly to keep the best interest … Continued

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