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409A Valuations

Issue stock options and equity with confidence through clear, defensible valuation assessments.

409a valuations

What is a 409A Valuation?

A 409A valuation assesses the fair market value of a private company’s common stock as defined by IRS regulations. This valuation is critical for companies to accurately set the exercise price for stock options and provide transparency to investors. An independent analysis is essential for company leaders to ensure compliance with IRS requirements, determine equity compensation, and establish a valuation for fundraising and other financial purposes. Annual valuations are recommended and often necessary for businesses to stay current with internal growth, regulatory changes, and market fluctuations.

What Can I Expect in a 409A Valuation?

We start by collecting key metrics such as financial statements, equity structure, and assess relevant industry trends. This comprehensive assessment provides a picture of the company’s total equity value in relation to its income, assets, and prevailing market conditions. Equities are then allocated to the appropriate stock classes using a model tailored to your business’s specific needs. The end result is a compliant, transparent report that accurately reflects the company’s stock value.

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Our Service Answers Questions Like:

  • Is this the fair market value of the company’s stock?
  • Were the right valuation methods used?
  • Does your valuation process use proven methods and accurate market information?
  • Are you compliant with IRS rules?
  • How do you show that option exercise prices are set at or above fair market value?
  • What risks are specific to my business and my industry?

Why Partner with FE International?

FE International provides a dedicated, highly specialized partnership that understands the ins and outs of the lower middle market tech industry.

Since 2010, we’ve analyzed thousands of tech companies with our data-driven process, so we understand the metrics that matter when analyzing the financials of a business. Our team of licensed CFAs and CAs is specialized in international transactions with locations in New York City, London, Mumbai, Miami, and San Francisco.

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Our Services

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Exit Planning Services

Your business is your work, your future is our responsibility. Our team provides comprehensive exit planning services to help ensure you’re ready to take the steps toward selling without leaving value on the table.

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Quality of Earnings

Gain a transparent and accurate analysis of your target business’ reported earnings, like recurring transactions, market demand, and revenue stability. Make informed decisions with a comprehensive understanding of the financial integrity of a potential transaction.

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409A Valuations

Issue stock options and equity with confidence with FE International’s 409A valuations. Stand up to regulatory review and drive strategic decision-making with clear, defensible valuation assessments.

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Operational Due Diligence

Uncover the strengths and weaknesses of a business's operational process. Our analysis covers supply chain, logistics, procurement, and departmental efficiencies. Find the red flags and untapped potential of a target business.

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Technical Due Diligence

Bridge the gap between investors and developers with our unbiased assessment of a product’s code quality, functionality, tech stack, and logic. Identify any weaknesses in security, compliance, scalability, and other factors influencing an investment.

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