409A Valuations Pre-IPO: What Changes as You Approach an Offering
As an IPO becomes a realistic near-term outcome, 409A valuations often require closer attention. This guide explains changes to the illiquid start-up safe harbor, valuation refresh cadence, grant-date scrutiny, and the relationship between 409A, ASC 718, and pre-IPO disclosure review.
Shareholder Dispute Valuation: What Your Shares Are Worth Depends on Three Questions
The value of shares in a shareholder dispute can change significantly depending on the jurisdiction, cause of action, and valuation date. This article explains how those factors shape the applicable standard of value, treatment of minority and marketability discounts, valuation methodology, and the role of the valuation expert.
Token Burn Valuation: What a Burn Changes in Your Numbers
Token burns can affect valuation, financial reporting, and tax in different ways. This article explains how burns change supply inputs, when ASC 820 market pricing already reflects the event, what happens when a company or fund’s own holdings are burned, and the accounting and tax questions finance teams should document and address.
409A Valuation After an Acquisition: Whose Stock Gets Appraised?
An acquisition can change how existing and new stock options are treated under Section 409A. This article explains the valuation requirements for assumed or substituted options, new grants on acquirer stock, and when post-close events may require updated valuation work.
Gift Tax Business Valuation: What the IRS Expects and How to Get It Right
Gifting an interest in a closely held business requires a supportable fair market value and careful documentation. This article explains how gift tax business valuations are performed, what the IRS looks for, how valuation discounts are supported, and what makes an appraisal defensible if the return is examined.
Fork Token Valuation: Pricing and Reporting Tokens Received in a Chain Split
Receiving tokens from a blockchain fork raises complex tax, valuation, and accounting questions. This guide explains how to determine the appropriate measurement date, support fair market value, evaluate pricing sources, apply ASC 350-60 and ASC 820, and document a defensible valuation for both tax reporting and financial statements.
Crypto Estate Planning: How Digital Assets Are Valued for Estate and Gift Tax
Estate planning for cryptocurrency involves more than wallet access. This article explains how digital assets are valued for federal estate and gift tax purposes, including fair market value, date-of-death valuation, pricing sources, basis rules, reporting requirements, and situations where a documented valuation is necessary for restricted, illiquid, or pre-launch digital assets.
Estate Tax Business Valuation: What Makes a Defensible Report
Learn how estate tax business valuations are prepared under IRC Section 2031, Revenue Ruling 59-60, and Form 706 requirements. Understand valuation methods, DLOM and DLOC discounts, IRS scrutiny, and what makes a defensible valuation report.
409A Valuations and Incentive Stock Options (ISOs) vs. Nonqualified Stock Options (NSOs)
Learn how 409A valuations support stock option grants for private companies by establishing fair market value at the grant date. This guide explains the differences between ISOs and NSOs, how Sections 409A, 422, and 83 interact, common compliance risks, valuation safe harbors, and why an accurate 409A valuation is essential for preserving favorable tax treatment.
Founder Equity, Stock Options, and the 409A Valuation
Granting stock options without a defensible 409A valuation can expose employees to significant tax consequences. This guide explains how IRC Section 409A applies to founder equity and employee stock options, how fair market value determines option strike prices, when to obtain or refresh a 409A valuation, the three IRS safe harbor methods, and how 83(b) elections fit into the broader equity compensation framework.
ASC 820 for Private Equity Funds: A CFO's Operational Guide to Fair Value Measurement
This guide explains how private equity fund CFOs can apply ASC 820 alongside ASC 946 and the AICPA VC/PE Practice Aid to produce defensible fair value measurements. It covers Level 3 valuations, allocation methodologies, calibration, audit expectations, and common reporting issues that arise during quarterly and year-end valuation cycles.
The 409A Option Pricing Model (OPM): How It Works and When to Use It
The Option Pricing Model (OPM) is one of the most widely used allocation methods in 409A valuations for venture-backed companies with complex capital structures. This guide explains how OPM works, why common stock is typically valued below preferred stock, the assumptions that drive the analysis, how OPM compares with PWERM and hybrid methods, and what founders, CFOs, and boards should review in an OPM-based 409A valuation report.
What Is 409A Safe Harbor? How Startups Protect Their Valuations
Learn how the 409A safe harbor protects startup stock option valuations, the differences between the three IRS-approved valuation methods, and when companies should obtain a new 409A valuation to maintain compliance.
409A Safe Harbor Method: Complete Compliance Guide
A practical guide explaining the IRS 409A safe harbor framework, including the independent appraisal requirement, documentation standards, valuation refresh timing, common compliance mistakes, and best practices for maintaining defensible 409A valuations.
Understanding Cap Tables: What Your Cap Table Must Have
A cap table is the foundation of a company’s ownership records and plays a critical role in fundraising, equity compensation, and valuation. This guide explains the essential components every cap table should include, how cap tables evolve as companies grow, and why maintaining an accurate cap table supports smoother audits, financing events, and valuation engagements.
409A Valuation Refresh Schedule: When to Update Your Valuation
A practical guide explaining when companies should refresh a 409A valuation, how the IRS evaluates valuation staleness, common refresh triggers, the reality behind the “90-day rule,” and how refresh timing changes as companies mature.
Utility vs. Security Token: How Classification Affects Valuation
Token labels can be misleading. This article explains how utility, security, and governance token classifications affect valuation methods, financial reporting, tax treatment, and audit documentation. It covers the Howey test, ASC 350-60, ASC 820 fair value measurement, IRC Section 83, token grants, DLOM, and CFO documentation requirements.
How Staking Rewards Affect Token Value: Tax, Reporting, and Valuation Implications
This article explains how staking rewards affect tax reporting, financial reporting, and token valuation. It covers Rev. Rul. 2023-14, dominion and control, locked rewards, liquid staking tokens, ASC 350-60, ASU 2023-08, emission mechanics, dilution-adjusted yield, and audit-ready documentation.
Token Seed Round Valuation: What Founders Need to Know Before Granting Tokens
This article explains why founders should complete an independent token valuation before issuing seed-stage token grants. It covers restricted tokens, 83(b) election timing, SAFT and SAFE-plus-warrant pricing, DLOM, ASC 820 differences, and the diligence risks that can arise when early token grants are undocumented.
Token Valuation for Tax Reporting: What the IRS Requires (and What It Doesn't Say)
This article explains how U.S. taxpayers and companies should think about token valuation for tax reporting. It covers IRS fair market value requirements, taxable events, compensation tokens, staking rewards, hard forks, §83(b) elections, and the gap in guidance for illiquid or pre-launch tokens.