409A valuations are a critical aspect of equity compensation as they determine the fair market value of a private company’s equity. Unfortunately, 409A valuations can be confusing for many private company founders and potential mistakes during the valuation process can lead to unexpected costs.
This guide is intended to provide an overview of the 409A valuation process, including:
1. What 409A valuations are and how they work
2. How to choose a 409A valuation provider
3. How to engage with your 409A valuation provider
4. What to expect during and post-409A