How to choose a 409A valuation provider?

  • Finance

Choosing a 409A valuation provider requires evaluating experience, independence, methodology, and audit support. Look for firms with strong credentials, industry expertise, and a clear track record of IRS-defensible valuations. Providers should use recognized valuation approaches such as income, market, and option-pricing models. Transparency around assumptions, responsiveness, and post-report support are essential, especially if your company plans to raise capital. Avoid providers that oversimplify or lack detailed documentation. A strong provider should clearly explain results and stand behind the valuation during audits or due diligence?

R&D Offer Quiz

Step 1 of 3

Answer to find out if you're eligible for R&D tax credits.

Do the activities performed relate to a new or improved business component’s function, performance, reliability, quality, or composition?(Required)
For Example: A mid-sized packaging company develops a slightly modified cardboard box design to improve its stacking strength (reliability) for warehouse storage, involving minor adjustments to the corrugation pattern to reduce collapse under standard weight loads.
Is your company trying to discover information to eliminate uncertainty concerning the capability or method for developing or improving a business component?(Required)
For Example: A furniture manufacturer investigates whether a cheaper wood adhesive can hold joints as effectively as the current one during assembly, testing bond strength to resolve doubts about its capability in standard production lines.
Do the activities performed constitute a process of experimentation?(Required)
For Example: An auto parts supplier runs a series of bench tests on different lubricant formulations to find one that reduces friction in engine bearings more effectively, systematically comparing wear rates over simulated operating cycles.