Clarity on the processes that
guide corporate valuation.
Insights to business valuation for founders, CFOs, investors, and advisors.
Overviews and explanations of important valuation standards — 409A, ASC 820, ASC 718, estate planning, and more. Learn how each one works, when they are needed, and what to watch out for.
Founders preparing for their first 409A. CFOs preparing for audit season. Attorneys and CPAs navigating estate planning for clients. Investors setting up or managing a fund. Individuals and private entities working on strategic financial planning.
Strategic Planning Valuations — Using Fair Value for Internal Decisions
Most companies encounter valuation in the context of compliance. The highest-performing companies do something different — they use it proactively as a strategic tool for capital allocation, portfolio management, and board-level governance.
Early-Stage vs. Late-Stage 409A: What Changes as You Scale
A 409A valuation at a pre-seed startup looks nothing like one at a pre-IPO company. This guide walks through the full lifecycle — from CVM and OPM at seed stage through PWERM at Series C and SEC scrutiny before IPO — covering methodologies, costs, DLOM, and common mistakes at each stage.
QSBS: How Qualified Small Business Stock Affects Your Valuation Strategy
What most people don't realize is that valuation plays a central role in nearly every aspect of QSBS planning. From determining whether a company qualifies to issue QSBS in the first place, to maximizing the exclusion through gift-based stacking strategies, to documenting eligibility in case of an IRS audit—the quality, timing, and methodology of your valuations can make or break millions of dollars in tax savings.
ASC 718 Stock Based Compensation: A Founders Guide
If your company grants stock options or equity awards, ASC 718 determines how that compensation hits your financial statements. Here's what founders need to know before their first audit.
ASC 820 Portfolio Valuation:
For funds whose portfolios consist primarily of illiquid, privately-held investments, ASC 820 compliance is one of the most complex and judgment-intensive areas of financial reporting. The valuation of a single portfolio company can require multiple methodologies, significant assumptions about future outcomes, and detailed documentation that satisfies auditors, LPs, and regulators.
Tax and Estate Planning:
If you're transferring anything other than publicly traded securities or cash, you almost certainly need a formal valuation. Here's when it's required, when it's recommended, and what's at stake.
What Is a 409A Valuation?
A 409A valuation is an independent appraisal of the fair market value (FMV) of a private company's common stock. Its primary purpose is to establish the minimum exercise price (also called the "strike price") at which employee stock options can be granted without triggering adverse tax consequences under IRC Section 409A.