One-Click 409A Valuations

AltShare’s comprehensive 409A valuation service is used by top audit firms and tech companies, and enables one-hour completion of 409A valuation analysis with the assistance of our dedicated team of valuation experts.

Why AltShare 409A Valuations?
FAQ
How long does it usually take to complete a 409A valuation with AltShare?
It takes up to 3-4 business days to provide a full valuation report for the auditor or IRS, compared with 2-4 weeks with other suppliers.
What methods does AltShare use to perform 409A valuation?
Altshare supports all four of the methodologies described in the AICPA Practice Aid for valuating equity securities of private companies: Option Pricing Method (OPM), Probability Weighted Expected Return Method (PWERM), Current Value Method, and Hybrid Method. In addition, AltShare’s 409A valuation tool and VC portfolio valuation tool have been used with thousands of valuations that were audited by accounting firms, including some of the “Big 4” that also use AltShare to audit those valuations. AltShare is proud to have a 100% audit success rate today.
How is a 409A valuation different than a regular valuation?
Section 409A was enacted as part of the American Jobs Creation Act of 2004 to curb abuses in executive compensation. Section 409A requires that a stock price’s fair market value be determined by the “reasonable application of a reasonable valuation method.” Severe penalties can be imposed for non-compliance upon granting ESOP with a strike price less than the fair market value of the stock price on the grant date.
What is the advantage of using AltShare for 409A Valuation?
Altshare provides a unique 409A Valuation or VC Portfolio Valuation package that includes a full valuation report for the auditor or IRS plus access to our cap table management tool with each company’s full data already integrated (share classes, shareholders, stock options, liquidation preferences).
Companies use AltShare to save significant time - running modeling scenarios for future financing rounds, exit events, secondary transactions or waterfall analysis. AltShare also enables easy sharing of company cap tables (which are updated in real time) as well as modeling scenarios with any third party (legal advisors, investors, auditors, etc.).