Who can perform a 409A valuation?

  • Finance

A 409A valuation should be performed by an independent, qualified valuation provider with appropriate financial and appraisal expertise. While companies may attempt internal valuations, these rarely qualify for safe harbor protection. Independent firms typically employ credentialed professionals and follow accepted valuation standards. Independence is critical, meaning the provider should not have conflicts of interest such as ownership or control. Using a reputable third-party firm significantly reduces compliance risk and strengthens defensibility in the event of an IRS audit or transaction review?

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.