Redwood Valuation Services •
Redwood Valuation Services •
To help you figure out what you need, here are some of our core Valuation Service Offerings.
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A 409A valuation provides a company with the fair market value of common stock for stock compensation expense purposes.
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Any private company that wishes to issue equity-based compensation to employees typically needs a 409A valuation in order to qualify for safe harbor under IRC Section 409A to avoid interest, penalties, and other potential risk exposure.
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Issuing employee stock options but haven’t had a valuation in 12 months OR experienced a material event like:
• A new round of funding has been raised (whether preferred or SAFE, etc.)
• Secondary sales of stock
• A pivot or major milestone
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A Purchase Price Allocation includes determining the fair value of the transaction consideration, intangible assets acquired, liabilities assumed, and certain tangible assets as of the date of acquisition in order to allocate the value of the purchase consideration to the assets and liabilities acquired.
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Business owners are often expected to complete a PPA for tax and financial reporting purposes after the completion of a successful acquisition to be in compliance with the relevant regulatory bodies (IRS, SEC, etc.).
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Assets acquired and liabilities assumed must be marked to market in accordance with the laws of the relevant jurisdiction (typically GAAP or IFRS) in order to allocate the purchase price amongst the tangible and intangible assets acquired, including goodwill.
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Portfolio valuations are a necessary step in running various forms of private equity funds, especially when there are limited partners involved.
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Funds are required under US GAAP to report holdings at fair value for financial reporting. Limited partners rely upon accurate estimates of value for their illiquid investments. And fund managers gain a third-party perspective on valuations that can assist them in allocation, risk assessment, and the monitoring of their holdings.
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Pursuant to ASC 820, private equity funds, venture capital funds, hedge funds, pension funds, and other institutional, investors are required to periodically (yearly or quarterly) report the values of their portfolio investments to their investors.
- Vlad Mkrtumyan, CEO at Logic Inbound
"We talked to 5 different business brokers and valuation companies, Redwood bar none gave us the most comprehensive consultation."
Tracy Saxton, Chief Business Officer at Convelo Therapeutics, Inc.
"Redwood was very responsive and facilitated a quick turnaround on a time-sensitive engagement. The Redwood team are expert in the 409A valuation space and were able to handle a very complex fact pattern that our prior valuation team could not [properly] model. We were confident in the report, and I highly recommend Redwood for your business valuation needs."
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For some companies, the value may be decided less by their machines and facilities and other hard assets, but by their processes, ideas, and designs – that is, their intellectual property. And that’s why intellectual property valuing is such an important part of determining the overall value of a business. For life science and nascent-stage tech companies, IP spinout valuations may be an effective tax strategy.
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Valuations are most often needed for effective IP spinout strategy execution. Additionally, for some early-stage companies, the ability to obtain financing may rely on determining the value of their intellectual property (IP). Once the value of the IP has been accurately determined, the value of the entire enterprise may be easily estimated for IP-reliant companies.
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This may include valuations of a single IP asset or the valuation of multiple IP assets including patents (which includes individual patents, patent families, and group patents), as well the valuation of related intangible assets like trademarks, etc. Purposes are varied and the detail of analysis ranges widely depending on the intended use.
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A Token Valuation is used to derive the fair market value of a digital asset. Typically, these are performed for tax compliance, strategic, and financial reporting purposes.
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Any entity that issues digital assets (i.e. various forms of tokens, etc.) may have the opportunity or need to grant digital assets or related instruments to founders, investors, key employees, etc. A valuation should be obtained particularly for tax compliance or tax planning purposes.
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A token valuation is often needed in the instance that a company wishes to grant employees deferred compensation in the form of token grants or related grants (SAFTs, SAFTEs, etc.) but could be needed for financial reporting or gift tax purposes along with a variety of other uses.
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Valuation of a business, business interest, or other property owned by the estate of a deceased person is often necessary to prepare and file an estate tax return. A valuation may also be needed when a charitable donation or gift is needed depending upon the nature of the donation/gift.
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Estate and gift taxes are levied by the federal government on property transfers from one person to another at death (estate tax) or while the giver is alive (gift tax). Several states also impose estate taxes.
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For estate planning purposes or transfer tax purposes, determining the value of this ownership interest can be challenging and involves consideration of many factors. Any valuation report, whether it is for an estate tax filing or for a gift, is subject to IRS review and must meet the requirements of being a “qualified appraisal.”
Start your Valuation now.
Our team of highly qualified specialists can provide accurate, timely, and unbiased opinions of value that withstand scrutiny by auditors, attorneys, and regulatory agencies. Our focus on valuation enables us to attain the highest level of technical proficiency and maintain the highest valuation standards.