C-Value excels in conducting valuations tailored for tax purposes, particularly in granting options under the provisions of Section 409A of the IRS code.

Compliance with IRS regulations requires 409A valuations of a company’s common shares for non-public companies offering stock-based compensation to their employees. According to IRS regulations, when employee stock options (ESOP) are granted, they cannot be issued with a strike price lower than the ordinary share value. 409a valuation studies ensure that companies do not offer employees options at below fair market value. The fair market value of a company’s ordinary shares is used to set the strike price for employee options.

Given the specific requirements and regulations, it is imperative to engage an experienced valuation firm with a proven track record in producing 409A valuation reports and a nuanced understanding of the complexities inherent to each company.

As part our solution, we provide 409A valuations to over 150 companies each year, C-Value provides a thorough valuation analysis, detailed breakdowns of the methodologies employed in calculating the value of your startup, and a breakdown of the preferred shares contributing to the company’s value.