409A Valuation Services
IRS-compliant, audit-ready 409A valuations prepared by credentialed CPAs - protecting your equity program, your employees, and your Safe Harbor position across the United States.
100+
Reports Delivered
15+
Industries Served
IRS
Safe Harbor Compliant
CVA & AICPA
Qualified Experts
What It Is
Why Private Companies Need a Compliant 409A Valuation
A 409A valuation determines the fair market value (FMV) of a private company's common stock - the legally required number that your attorneys, board, and investors rely on before a single stock option can be issued under IRC Section 409A of the U.S. Internal Revenue Code.
Without a valid 409A valuation, stock options are treated as deferred compensation. That classification triggers immediate income taxation for every employee holding them, a 20% federal penalty tax on top, and additional state-level penalties where applicable. The company faces legal and reputational exposure as well.
A properly executed 409A provides 12 months of IRS Safe Harbor protection - shifting the burden of proof from your company to the IRS. At Virtue Advisors, every 409A report is prepared by a credentialed CPA. Not a platform. Not software. A qualified professional who is ethically bound by AICPA standards - and who connects every valuation conclusion directly to your tax strategy, equity plan, and financial reporting.
Our Services
409A Valuation Services We Offer
Whether you are issuing your first options, refreshing an expired report, or navigating a complex multi-class equity structure - Virtue Advisors delivers the right 409A engagement for your situation.
Get a 409A Valuation That Protects Your Equity - and Your Employees.
When Do You Need a 409A Valuation?
A 409A valuation is required before each option grant and must be refreshed when it expires or a material event occurs. Each situation below requires an independent, credentialed report.
- First Stock Option Grant
No valid FMV exists. A 409A is legally required before the first option can be issued.
- Existing 409A Is 12 Months Old
Safe Harbor protection expires. New grants require a refreshed report - no exceptions.
- New Funding Round Closed
Preferred stock pricing changes the implied FMV of common stock. A new 409A is required before any grants post-close.
- Material Change in Business
Significant shifts in revenue, operations, or strategy affect FMV and may require an immediate update.
- Key Executive Departure or Addition
Changes the company risk profile and value - triggering a reassessment before new grants.
- M&A Transaction or Acquisition Offer
Transaction context changes the valuation basis. A current 409A is required for deal documentation.
- Preparing for IPO or SPAC Listing
Pre-listing FMV documentation is required for audit readiness and regulatory compliance.
- Secondary Share Sale or Tender Offer
FMV must be documented to support the transaction price and protect all parties from IRS challenge.
- SAFE or Convertible Note Conversion
Conversion changes the capital structure and typically triggers a new valuation assessment.
- Equity Grants to Advisors or Contractors
Options issued to non-employees still require a valid 409A for IRS compliance.
- ESOP Integration or Equity Plan Update
Significant equity plan changes require an updated FMV to maintain compliance.
- Annual Compliance Review
Many companies update annually to maintain continuous Safe Harbor coverage between material events.
Who Needs a 409A Valuation?
409A Valuation by Funding Stage
The right 409A methodology depends on where your company is in its lifecycle. Our credentialed CPAs apply the right IRS-approved approach for your exact stage - not a one-size-fits-all model.
Stage 01
Pre-Funded
Starting at
$799
This is for new or early-stage companies that are pre-revenue or in the early stages of developing their product and service. A 409A valuation at this stage establishes a defensible FMV of common stock for the purpose of issuing equity to founders, early hires, or advisors - before any formal funding has been raised.
Stage 02
Angel / Friends & Family
Starting at
$990
This is the first official equity funding stage - the capital a company needs to validate its model and begin building. A 409A is legally required before any options are granted to employees or advisors at this stage, regardless of the size of the raise.
Stage 03
Seed Stage
Starting at
$1,499
The company has raised a seed round and is building toward product-market fit. New preferred stock pricing from the round changes the implied FMV of common stock - a refreshed 409A is required before any new option grants can be issued post-close.
Stage 04
Series A
Starting at
$2,099
The company is growing, has a defined business model, and has completed its first institutional funding round. Series A preferred stock introduces liquidation preferences and participation rights that must be properly accounted for. OPM Backsolve is the primary methodology applied to isolate the true FMV of common stock.
Stage 05
Series B and Above
Institutional Scale
Custom
At Series B and beyond, the company has meaningful revenue, a developed operational history, and multiple rounds of preferred stock creating a complex capital structure. OPM Backsolve or Probability-Weighted Expected Return Method (PWERM) is applied alongside income approach modeling to deliver a defensible common stock FMV.
More Than a 409A Report: Strategic Valuation Guidance
Most 409A providers stop at valuation. Virtue Advisors connects your results to compliance, audits, ASC 718, equity planning, and financing decisions.
Ethical objectivity
CPAs are bound by the AICPA Code of Ethics. Every conclusion is impartial and defensible - legally and professionally.
IRS and GAAP expertise
Deep knowledge of tax regulations means your report is structured correctly for its exact IRC 409A purpose.
Integrated tax strategy
409A conclusions feed directly into ASC 718 stock compensation recognition, equity plan design, and tax planning.
Audit-ready documentation
Prepared to satisfy Big 4 auditors, the IRS, investors, and courts - not just the immediate compliance need.
One team, four pillars
Tax. Accounting. Advisory. Valuation. All four under one roof - every 409A engagement benefits from the full picture.
409A Valuation Methods We Use
Method selection is the most consequential decision in a 409A engagement. Our credentialed CPAs apply the right IRS-approved methodology - and document exactly why in every report.
- Option Pricing Models
Complex capital structures, convertible notes, SAFEs, and multi-class equity allocations.
- PWERM
Applied when multiple exit scenarios have distinct and estimable probabilities - Series B+ and later-stage companies.
- OPM Backsolve
Derives implied total equity value from the most recent preferred stock round pricing - the IRS-preferred method for VC-backed companies at Series A and beyond.
Advantages of a Professional
409A Valuation
IRS Safe Harbor Protection
A credentialed 409A report shifts the burden of proof to the IRS for 12 months. Our documentation is built to withstand IRS scrutiny from day one.
Avoid the 20% Penalty Tax
Employees who receive options without a valid FMV face immediate taxation plus a 20% federal penalty. A current 409A eliminates that risk entirely.
Investor Confidence
A current, independent 409A validates your equity structure during fundraising due diligence. Investors move faster when the report is already on the table.
Audit Readiness
Big 4 auditors and SEC reviewers expect a credentialed, documented FMV for ASC 718 stock compensation reporting - not internal estimates.
Employee Equity Protection
Ensures options are issued at a defensible fair value - protecting your team from unexpected tax exposure at the point of grant.
Board and Legal Compliance
Satisfies board governance requirements and supports attorney review of equity plan documentation and shareholder agreements.
Stronger Negotiating Position
A credentialed FMV conclusion gives founders and CFOs an objective anchor for equity discussions with investors and acquirers.
Strategic Decision Support
A clear, current FMV helps founders, CFOs, and advisors make informed decisions about equity grants, dilution, and cap table management.
Integrated Tax Strategy
At Virtue Advisors, 409A conclusions feed directly into ASC 718 reporting, estate planning, equity-related tax minimization - part of same plan.
How Our 409A Valuation Process Works
Structured, transparent, and built for the speed that equity timelines demand - our process delivers an audit-ready conclusion without unnecessary back-and-forth.
01
Free Consultation
We discuss your company's stage, capital structure, purpose, and timeline. You receive a clear scope and fee confirmation - no commitment required.
02
Document Collection
We provide a tailored checklist. Typically: cap table, three years of financial statements, most recent funding documents, projections, and corporate agreements.
03
Methodology Selection
We identify the right IRS-approved approach - OPM Backsolve, DCF, Market, or Asset - based on your business model, funding stage, and capital structure.
04
Financial Modelling and Methodology Application
We build the financial model, apply the selected methodology, and document all adjustments, assumptions, and rationale.
05
Draft Report Delivery
You receive a complete draft - methodology, analysis, assumptions, and FMV conclusion - for your review before the report is finalized.
06
Final Report and Ongoing Support
Signed, certified report delivered CPA. Post-valuation support for investor due diligence, IRS inquiries, audit review is included at no additional charge.
What Your 409A Report Includes
Every Virtue Advisors 409A report is a comprehensive, fully documented deliverable - prepared for external scrutiny from the IRS, Big 4 auditors, and investor due diligence reviewers.
409A Safe Harbor
What It Means and Why It Matters
IRS Safe Harbor status shifts the burden of proof to the IRS. Without it, your company must prove its FMV is correct in the event of a challenge - a significantly harder position in any audit or dispute.
Independent Qualified Appraiser
A credentialed third-party professional appraisal - not internal estimates or automated platforms.
Reasonable Valuation Method
An IRS-recognized approach - Income, Market, or Asset-Based - applied correctly for your company's stage.
No Material Change Since Valuation
FMV must reflect conditions. Any event requires a refresh before grants.
Documented Assumptions
All key inputs - growth rates, discount rates, comparables - must be fully disclosed and supported.
- PRO-TIP
Most high-growth companies refresh every 6 months to ensure FMV alignment with rapid scaling.
A 409A Report Is Where Other Firms Finish.
It's Where We Start.
A 409A valuation is only valuable when applied. At Virtue Advisors, it’s not an endpoint but the foundation for integrated tax, accounting, advisory, and valuation strategy.
ASC 718 stock compensation reporting
The FMV from your 409A is the direct input into stock-based compensation expense recognition for GAAP financial statements.
Equity plan & tax strategy
We connect your 409A conclusion to your broader equity plan design, option pricing strategy, and tax minimization approach.
Estate & gift tax planning
For founders and executives, equity value informs gift and estate tax strategy - we integrate the two directly.
CFO & Controller Advisory
409A insights feed into financial reporting, cap table management, and strategic equity planning through our fractional CFO service.
Succession & Exit Planning
We do not just produce your 409A for exit readiness - we structure your equity position to maximize what you take out.
409A Valuation Services
Transparent Pricing and Support
At Virtue Advisory, we offer reliable and cost-effective 409A valuation services designed to help startups and growing companies stay compliant with IRS regulations while scaling with confidence. All valuations are conducted by NACVA-certified valuation analysts, ensuring accuracy, credibility, and audit-ready reports.
All pricing is confirmed before any work begins - no billable hours, no hidden charges. Post-valuation support for investor due diligence, IRS inquiries, and audit review is included in every engagement at no additional charge.
Ready to Protect Your Equity Program and Your Employees?
409A Report Built to Meet IRS and Board Review Standards
IRC Section 409A
Mandates independent FMV for stock option pricing. Non-compliance triggers a 20% IRS penalty tax on option holders.
USPAP
Uniform Standards of Professional Appraisal Practice - the foundational U.S. appraisal standard.
SSVS No. 1 - AICPA
Governs business valuations prepared by CPA professionals.
NACVA Professional Standards
Applies to all CVA-credentialed analyst engagements.
IRS Revenue Ruling 59-60
Foundational IRS framework for valuing closely held business interests.
ASC 718
GAAP standard for stock-based compensation expense recognition - directly informed by your 409A conclusion.
ASC 820
Fair value measurement for financial instruments and portfolio reporting.
IRC Section 1202 (QSBS)
Governs Qualified Small Business Stock eligibility - relevant where QSBS status intersects with 409A compliance.
GAAP
Generally Accepted Accounting Principles for all financial reporting engagements.
Sector Expertise
Industries We Serve
Generic financial models miss the sector-specific risk factors, transaction multiples, and valuation conventions that make a 409A report defensible. Our team brings deep industry knowledge to every engagement.
Why Choose Virtue Advisors for
Your 409A Valuation?
| Virtue Advisors | Standalone Valuation Firms | Online Platforms | |
|---|---|---|---|
| CPA Designation and Ethical Standards | Varies | ||
| IRS Safe Harbor Compliant Reports | Partial | ||
| Integrated Tax and Equity Strategy | |||
| Audit and IRS Admissible | |||
| Industry-Specific Methodology | Partial | ||
| Post-Valuation Advisory Support | Rarely | ||
| ASC 718 Reporting Integration | |||
| B2B Partner Network - 50+ Firms | |||
| Transparent Flat-Fee Pricing |
Your Clients Need 409A Valuations.
We Take It from Here.
Virtue Advisors B2B Partner Program lets firms access full 409A valuation services delivered under your client relationship by our CPA team.
Trusted by Founders and CFOs Who Cannot Afford to Get It Wrong.
- Startups Issuing Options - Standard and refresh 409A valuations, investor-ready reports, and cap table compliance support.
- VC-Backed Private Companies - Post-round refresh valuations and complex capital structure 409A engagements.
- CFOs and Finance Teams - ASC 718 stock compensation reporting support, audit-ready FMV documentation, and M&A advisory.
- Business Owners Planning an Exit - Pre-IPO 409A documentation, equity plan structuring, and integrated exit tax strategy.
- Corporate and M&A Attorneys - Litigation support valuations, defensible expert reports, and shareholder dispute documentation.
- Private Equity and Investors - Portfolio company 409A compliance and ASC 820 LP reporting support.
- CPA and Advisory Partner Firms - White-label 409A delivery across all service types through the Virtue Advisors B2B Partner Program.
Clients Who Trust Us
Trusted by 1,100+ clients across industries - from early-stage startups to established enterprises, real estate groups, and hospitality operators.
What Business Owners Say About Virtue Advisors Valuations
Best 409A Valuation Services
Across the United States
Virtue Advisors provides certified 409A valuation services nationwide, with headquarters in Alpharetta and active engagements across 20 U.S. cities, including Atlanta, New York, Houston, Dallas, and San Francisco.
Start Your 409A Valuation Today
IRS-compliant, audit-ready 409A reports from credentialed CPAs - serving businesses across the United States.
100k+
Hours of Tax, Accounting, Valuation & Advisory Services Delivered
1100+
Clients - Supported Across Diverse Industries and Projects
