409A Valuation vs. Cap Table: Why They're Not the Same Thing
A cap table tracks a company’s ownership and equity records, while a 409A valuation determines the fair market value of common stock. This article explains the difference, why valuation support matters when changing providers, and what Pulley customers should consider as they migrate their cap table and prior 409A valuation work.
Does Carta Defend a 409A Valuation It Didn't Perform?
Pulley customers moving to Carta should confirm who will support and defend their historical 409A valuations after the transition. This article explains what Carta’s assisted migration does and does not publicly address, what companies should ask before relying on an inherited valuation, and how Redwood can provide independent 409A valuation and audit support.
How to Switch Your 409A Provider (and When You Should)
With Pulley shutting down, companies may need a new 409A valuation provider. Learn how to switch from Pulley to Redwood, what records to transfer, how prior valuations are handled, and how Redwood supports audit questions during the transition.
Pulley Is Shutting Down. Who Defends Your 409A Valuation?
Pulley is shutting down and transitioning customers to Carta, raising an important question for companies with Pulley-issued 409A valuations: who will support those valuations if they are challenged? Learn what Pulley customers should consider when choosing independent 409A valuation support.
Why Is Pulley Going Out of Business?
Pulley is shutting down and transitioning customers to Carta. This article examines the market pressures and business dynamics surrounding the closure, what consolidation could mean for customers, and why companies should consider how the transition affects their 409A valuation support.
Common Stock vs. Preferred Stock in a 409A Valuation: Which Class the Rules Actually Cover
A 409A valuation determines the fair market value of common stock used for compensatory stock options, while preferred shares carry different rights and economics. This guide explains which stock qualifies under Section 409A, how preferred round pricing factors into the valuation, why common and preferred values can differ, and the consequences of setting an option strike price below fair market value.
Token Valuation Before and After a TGE: What the Listing Changes, and What It Doesn't
Token valuation changes when observable market trading begins, but a TGE or listing does not resolve every valuation question. This guide explains how pre-launch and post-TGE token valuations differ, including the role of market pricing, SAFT and token-warrant evidence, restricted tokens, DLOMs, §83 compensation rules, and ASC 820 fair value. It also clarifies how tax, financial reporting, and securities considerations remain separate throughout the valuation process.
Buy-Sell Agreement Valuation Disputes: Why Buy-Sell Agreements Often Don't Settle the Value
Buy-sell agreements can establish a price or valuation mechanism between owners, but that value may not control in every legal or tax setting. This article explains how buy-sell valuations are treated in IRS estate examinations, shareholder disputes, and divorce proceedings, including the requirements of IRC §2703 and the implications of Connelly v. United States.
409A Valuations for AI Startups: What Founders Need to Know
AI startups can experience meaningful valuation changes between funding rounds as model performance, proprietary data rights, compute access, strategic partnerships, and other technical or commercial milestones evolve. This guide explains when AI companies should reassess a 409A valuation, how appraisers determine common stock FMV, the three 409A safe harbor methods, and what founders should consider when selecting a valuation provider.
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.