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?
Rapid – AltShare’s transparent, fast and simple work paper-ready 409A Valuations are ready in just days.
Trustworthy and Compliant – AltShare is certified and fully compliant with SOC-1 (ISAE 3402), the AICPA Practice Aid, and IRS valuation requirements, ensuring the most trustworthy value conclusions
Transparent and Audit-Ready – AltShare’s experts have performed and audited thousands of 409A valuations. Our valuations are fully defensible and audit-ready.
Confirmed Break Point Calculations – AltShare works closely with top audit firms to ensure that our break-points calculations are highly-accurate.
Avoids Costly Errors – AltShare’s 409A Valuation Solution avoids valuation mistakes that result in unsupportable valuations, “cheap stock” charges and demands for financial restatement.
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.).
Waterfall and Scenarios
- enables simpler and faster modeling of multiple scenarios
- analyze and understand how different scenarios
- enables simple and streamlined calculation of expenses for financial reporting
102 Trust Services
- 102 trustee for equity-based compensation plans for employees
Mergers & Acquisitions
- wide range of Merger & Acquisition services
Corporate Restructuring and Tax Trust Services
- including corporate inversion, spinoffs, complex reorganizations and more
IPO and 15C Lockups
- oversee and ensure the implementation of restriction and lock-up rules for new or existing shareholders
Escrow Agent Services
- serves as an objective third party escrow agent
- valuate companies in just minutes, from seed to post-IPO
- one-stop business valuation solution
- performs valuations based on multiples of comparable companies in all industries