Simplify 409A / ASC 820 valuation work
Graphical waterfall analysis and audit-ready workpapers
Enter cap table
Enter liquidation preferences and other economic rights
Get company’s share classes fair value
Get allocation of company’s equity value per share class
Graphical waterfall analysis and audit ready workpapers
Provides sensitivity analysis
Saves time and avoids mistakes
Liquidation preferences: Pari Passu, double-dip,
non-participating, capped-participating and others
Preferred stock, warrants, convertible notes,
stock options and common stock
Excel export audit ready work papers
Enter cap table
Enter liquidation preferences and other economic rights
Get company’s share classes fair value
Get allocation of company’s equity value per share class
Graphical waterfall analysis and audit ready workpapers
Provides sensitivity analysis
Saves time and avoids mistakes
Liquidation preferences: Pari Passu, double-dip,
non-participating, capped-participating and others
Preferred stock, warrants, convertible notes,
stock options and common stock
Excel export audit ready work papers
| Features | ||
| 409A / ASC 820 Valuation Tool and Report |  |
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| Values complex equity securities | |
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| Unlimited access to financial data from thousands of public companies | |
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| Download summary tables into Excel | |
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| Share data in real time with third parties: CFO and startup executive team | |
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| Number of Users | 2 or more | |
| Support | Email and Telephone | |
Call Us(315) 636 5346 |
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| Consulting package | Call us |
Once you have purchased an annual license for AlgoValue, there is no additional cost for updating a valuation project.
It takes on average one hour to perform a 409A valuation with AlgoValue. It can, however, take slightly longer, depending on the complexity of the company’s capital structure.
AlgoValue supports all four of the methodologies described above for valuating equity securities of private companies. In addition, AlgoValue has been used with hundreds of valuations that were audited by accounting firms, including the Big 4. AlgoValue is proud to have a 100% audit success rate today.
There are four methods for valuating equity securities of private companies: the Option Pricing Method (OPM), the Probability Weighted Expected Return Method (PWERM), the Current Value Method, and the Hybrid Method. The complexity of a method corresponds to the enterprise’s stage of development.
This is a common problem for venture capital and private equity firms. It’s particularly challenging in cases of investments in privately held companies with complex capital structures.
Section 409A was enacted as part of the American Jobs Creation Act of 2004 to curb abuses in executive compensation. Section 409A requires that a stock price’s fair market value is determined by the “reasonable application of a reasonable valuation method”. Severe penalties can be imposed for non-compliance upon granting ESOP with a strike price less than the fair market value of the stock price on the grant date.
