Your client is a fledgling, bootstrapped startup burning cash to transform an innovative idea to reality and in this pursuit requires a talented pool of human resources, but is constrained to dole out all cash. For such innovative startups, stock options or deferred compensation play a very significant role in attracting right talent and retaining them. While most companies have stock options as an integral part of their employee compensation structure, they do not appreciate the importance of right valuation of stock options and conformance to the regulations of the revenue (IRS). Under valuation of stock options leads to undue favor to current employees at the cost of future employees and investors. Whereas over valuation leads to loss to current employees and revenue department. Hence, it is of utmost importance that valuation of deferred compensation is performed by a competent, independent professional appraiser having expertise in private company valuations and understands the nuances IRC 409A.
At Knowcraft, we provide end-to-end 409A valuation services of the highest quality to some of the leading valuation advisory firms in the US. Our team of seasoned valuation professionals is geared to help you maintain your quality of services while providing scalability, and all these at a very cost-effective offshore pricing model. Our strong internal processes and controls ensure that our 409A valuations are robust, defensible to the auditors and IRS, as well as very fair and transparent to clients’ employees. All these factors together ensure that your clients sail through their future tasks, be it expensing, audits, M&A or even an IPO.