1.5 CPE Section 409A comes under the US tax law. It holds the rules regarding the stock options that some companies give to their employees.
Obtaining a 409A valuation permits your firm to comply with all tax laws and prevent IRS audits, which may result in legal concerns, tax issues, and even interference with the company's operations if issues come up.
This course covers 409A valuations -- why they’re necessary, how they’re performed, how companies use them, what other corporate events can impact the appraisal, and how frequently companies need to obtain one.
We begin with an overview of the reasons for obtaining a 409A valuation. We then explain, at a high level, how 409A appraisals are performed: This explanation covers both the assumptions required and the methodologies used within the reports. An entire section is devoted to the Black-Scholes Option Pricing Method for allocating equity value to individual securities. This is followed by a discussion of events that could impact the methodologies used in the report and the opined values.
Learning Objectives
- Identify the reasons for obtaining a 409A valuation and the consequences of not obtaining one.
- Explore the valuation process
- Identify common misconceptions regarding 409A valuations.
- Recognize events that could impact the contents and conclusions of 409A valuations.
- Discover how frequently you need to obtain a 409A valuation.
Last updated/reviewed: March 5, 2024
21 Reviews (80 ratings)
Reviews
Anonymous
(advisor)
Overall an excellent presentation. Two points for the future. 1) During discussion of the income approach, you mentioned the market approach would be covered next. that did not happen, as the session moved to "How is equity value determined?" 2) Unsure if possible but the "OPM" section was really hard to follow. You noted same, but I observe.
Anonymous
(CFO)
The instructor explained this complex topic clearly. This is an excellent course for senior finance execs especially for those in start up private companies. Note that it looks like the Income Approach was explained twice while the Market Approach not at all --this should be corrected in the presentation.
Anonymous
(Controller)
This course was very informative as someone who is new to working with start-ups. I think it would be helpful to include some additional information on the slide deck - as a visual learner, I had a hard time following in some instances where the presenter was speaking to a blank slide.
Anonymous
(Senior manager - finance)
better if we could tell which questions we got wrong so that we can go back and either listen to the lecture or review the materials provided.
Moving on from the course and not knowing which questions we were incorrect about make it difficult to know which sections we mastered.
BinhMinh Hill
(Corporate Controller at Nitrogen Wealth)
Good overall course. It provides high level knowledge of the 409a. I like that the course has a few examples, talked about the timing of 409a , valuation methodology, distinction between Enterprise value vs. Equity value and material events that can influence value.
JORGE SALOMON
(ASSOCIATE at MERCOVUS)
The course provided valuable insights and enhanced my understanding of the main concepts related to Valuations. The Option Pricing Method, in particular, was especially useful as it clarified a topic that I had only vaguely studied in the past.
Anonymous
(Senior Accountant)
Eric seems very knowledgeable and experienced in these valuations however I think there should have been more emphasis on what it is early in the lecture and then a dive into why they occur after that.
Anonymous
(Controller)
This course provided a helpful overview of 409A valuations. I was surprised at the level of detail that was provided for the actual calculations, which was helpful.
Anonymous
(Senior Accountant)
This course provided a comprehensive introduction to 409a valuations. It provides valuable insight into underlying concepts and general best practices.
Anonymous
()
Helpful in providing an overview of the 409A valuation and provides enough information to be able to provide high level explanation to others
Brad Parker
( at Seamless Advisors)
Good course covering the basics, slide content is a little sparse but good enough for anyone with a valuation background.
Anonymous
(Senior Accountant)
Thorough course going through the material well. Thought it was a little long but the exam and quiz was very fair.
Kristen Rebello
(Controller at Browne Consulting Group)
This course was helpful and provided a straight forward approach and understanding to complex topics.
Anonymous
(CFO)
not bad, good use of time; would have liked to know common mistakles people make or "gotchas"
Anonymous
(Transaction Services - Senior Analyst)
The information was presented in a manner that was easy to follow and digest. Good Course
Jerome Kelliher
(VP of Finance and Accounting at Contiem, Inc.)
didnt deal with a lot of the intricacies of 409A; only valuation for stock options
Anonymous
(Controller)
Would love to see an example of these in specific sectors such as biotech
Anonymous
()
Good high level view of 409A valuations. The material was explained well.
Anonymous
(Consultant)
Good overview. It would have helped if an Excel model is provided.
Anonymous
(Accounting Manager)
Would help to break down example calcs step by step
Martin Clancy
(CFO at DataCore Software)
Very informative introductory course.
Prerequisites
Course Complexity: Intermediate
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA
95113
Contact:
For more information regarding this course, including complaint and
cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to
.
Eric SundheimPrincipal
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