409A Valuation Services
Globally Certified (CVA • ASA • ABV® • MRICS)
Valuation Experience
Valuations Completed
Industries Served
3-5 Days
The Wrong Strike Price Can Cost Your Team 20% in IRS Penalties.
A 409A valuation determines the fair market value (FMV) of a private company's common stock. It is a legal requirement under Section 409A of the U.S. Internal Revenue Code and must be completed before issuing stock options or other equity compensation to employees.
Without a valid 409A valuation, stock options are treated as deferred compensation — triggering immediate income taxation on the option holder, a 20% federal penalty tax, and additional state-level penalties. The company faces reputational and legal exposure as well.
A qualified independent appraisal provides 12 months of IRS Safe Harbor protection, shifting the burden of proof from you to the IRS. At Transaction Capital LLC, every 409A report is prepared and signed by a credentialed appraiser — not software.
Our 409A Valuation Services
Transaction Capital LLC delivers a full suite of 409A valuation services covering every company stage, capital structure, and compliance scenario.
Get an Audit-Ready 409A Valuation for Your Company Today.
409A Valuation Methods We Use
Method selection is the most consequential decision in a 409A engagement. Our credentialed appraisers apply the right IRS-approved methodology — and explain exactly why.
| Approach | Best For | Key Methods | Formula |
|---|---|---|---|
| Income Approach | Revenue-generating companies with projectable cash flows | Discounted Cash Flow (DCF) Capitalization of Earnings | PV = FCF / (1 + WACC)^n |
| Market Approach | VC-backed companies with a recent preferred round | OPM Backsolve Guideline Public Company (GPCM) | Value = Multiple x EBITDA |
| Asset Approach | Pre-revenue, asset-intensive, or distressed companies | Cost-to-Duplicate Net Asset Value (NAV) | NAV = Fair Assets - Fair Liabilities |
Option Pricing Models (Black-Scholes, Binomial Lattice)
Probability-Weighted Expected Return Method (PWERM)
2-Day Expedited 409A Valuation Report
Fast-track your report with priority delivery at a special price.
When Do You Need a 409A Valuation?
- First stock option grant - No valid FMV exists; a 409A is required before the first option is issued
- Existing 409A is 12 months old - Safe Harbor protection expires; new grants need a refreshed report
- New funding round closed - Preferred pricing changes the implied common stock value
- Material change in business plans - Significant shifts affect FMV and may require an immediate update
- Key executive departure or addition - Affects company risk profile and value
- M&A transaction or acquisition offer - Transaction context changes the valuation basis
- Preparing for IPO or SPAC listing - Pre-listing FMV is required for audit and regulatory readiness
- Secondary share sale or tender offer - FMV must be documented to support the transaction price
- SAFE or convertible note conversion - Conversion changes the capital structure and triggers a new assessment
Not Sure When Your 409A Needs Refreshing?
Who Needs a 409A Valuation?
Startups Issuing
Options
Companies Offering Equity Compensation
Pre-IPO
Companies
VC-Backed Private Companies
Companies with U.S. Subsidiaries
Companies Preparing for Fundraising
PE-Backed and Complex Cap Table Companies
Employees Receiving Options
409A Valuation by Funding Stage
The appropriate 409A methodology depends on where your company is in its lifecycle. Our credentialed appraisers apply the right approach for your exact stage — not a one-size-fits-all model.
| Stage | Typical Methodology | Key Consideration |
|---|---|---|
| Pre-Seed / Pre-Revenue | Cost-to-Duplicate or Scorecard | No revenue or funding history — value based on assets, IP, and team |
| Seed / First SAFE or Note | Market Approach or Backsolve | Recent SAFE or note provides an implied value anchor |
| Series A | OPM Backsolve on Preferred Pricing | Preferred liquidation preferences isolate common stock FMV |
| Series B | OPM Backsolve + DCF Weighted | Revenue traction supports DCF alongside OPM Backsolve |
| Series C | OPM Backsolve + DCF Weighted | Stronger revenue visibility allows greater DCF weighting alongside OPM Backsolve |
| Growth / Late Stage | DCF + Market Comparables | Revenue scale supports income and market approaches |
| Pre-IPO | Public Market Comps + DCF | FMV converges toward IPO pricing — audit-grade documentation required |
Benefits of a 409A Valuation
Find the Right 409A Valuation Partner
for Your Company with Transaction Capital LLC.
We believe in growing with our clients and offering tailored solutions.
How Our 409A Valuation Process Works
Our process is built for speed without sacrificing the rigor that makes a report defensible. Standard engagements are delivered in 3 to 5 business days.
Free Consultation
Discuss your company's stage, capital structure, and timeline with your assigned appraiser. Receive a flat-fee quote — no commitment required.
Data Collection
We provide a tailored checklist. Typically: cap table, 3 years of financials, funding history, and key corporate documents.
Methodology Selection
Choose the right IRS-approved method — OPM Backsolve, DCF, or Market Approach — tailored to your business model and funding stage.
Draft Report Delivery
Receive your complete draft — methodology, analysis, and FMV conclusion — before any payment is due. This is our Pay After Draft Review guarantee.
Final Report and Support
Signed, certified report delivered by your credentialed appraiser. Post-valuation audit defense and IRS inquiry support included at no additional charge.
Pay After Draft Review
What Your 409A Report Includes
Every Transaction Capital LLC 409A report is a fully documented, comprehensive deliverable structured to satisfy IRS requirements, Big 4 auditors, and investor due diligence reviewers.
- Executive Summary - FMV conclusion, effective date, scope, and purpose
- Company and Industry Overview - Business model, competitive position, and market context
- Capital Structure Analysis - Cap table, equity class rights, liquidation preferences, anti-dilution
- Methodology Rationale - Why the chosen IRS-approved approach was applied
- Financial Analysis - Historical review, normalization adjustments, and projections
- Market Comparables - Guideline public company multiples and recent transaction data
- OPM or PWERM Allocation - Equity value allocation across share classes with full workings
- Discount Adjustments - DLOM and company-specific risk factor documentation
- Regulatory Compliance Statements - USPAP, SSVS, NACVA, and IRC Section 409A certifications
- Appraiser Certification - Signed by ABV, ASA, CVA, or MRICS credentialed professional
- Audit Defense Package - Supporting schedules, source data log, and management representation
See What You Get Before You Commit.
Download a sample Transaction Capital LLC 409A report to review the methodology, documentation depth, and compliance certifications included in every engagement.
Our reports are typically 40 to 60 pages — comprehensive enough to withstand Big 4 audit scrutiny, and clear enough for founders and board members to understand the conclusion.
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 — a much harder position in an audit.No material change since valuation
Independent qualified appraiser
Documented assumptions
12-month validity window
Reasonable valuation method
Compliance Standards We Follow
NACVA
ASC 718
ASC 820
SSVS No. 1 (AICPA)
IRC Section 1202 (QSBS)
USPAP
IRS Revenue Ruling 59-60
IRC Section 409A
Insights From Real Valuation Engagements
2,500+ Valuations. 50+ Industries. Deep Expertise in Each.
Deep sector knowledge means our appraisers understand industry-specific risk factors, market multiples, and valuation conventions — not just generic financial models.
Why Choose Transaction Capital LLC?
(Big 4 Quality. Boutique Speed. Zero Compromise.)
The 409A market has two extremes: automated platforms that sacrifice defensibility, and large firms charging thousands with weeks of wait. Transaction Capital LLC operates where neither can compete.
| Feature | Transaction Capital LLC | Big 4 Firms | SaaS Platforms |
|---|---|---|---|
| Credentials | ABV, ASA, CVA, MRICS | PASSES - High cost | FAILS - Automated |
| Turnaround | 3–5 Business Days | 4–6 Weeks | 24–72 Hours |
| Starting Price | $500 Flat Fee | $3,000–$10,000+ | $500–$1,500 |
| Pay After Draft Review | ✓ | ✗ | ✗ |
| Human Expert on Every Report | ✓ ( Always) | ✓ | ✗ |
| Safe Harbor Compliance | ✓ (Documented) | ✓ | Partial |
| Post-Valuation Audit Support | ✓ (Included) | Extra cost | ✗ |
| Complex Cap Structures | ✓ (OPM Backsolve ) | ✓ | Partial |
Expert-Led Certified Professionals
Transparent and Affordable Pricing
Complete Post-Valuation Support
Trusted by Investors, Attorneys, and Courts
Elite Leadership
409A Valuation Pricing
All 409A engagements at Transaction Capital LLC are priced on a flat-fee basis. You receive your quote before any work begins and pay only after reviewing your draft report.
| Stage | Starting Price | Turnaround | Methodology |
|---|---|---|---|
| Pre-Seed / Pre-Revenue | $500 | 2–3 Business Days | Cost-to-Duplicate, Scorecard |
| Seed / SAFE-Backed | $500 | 2–4 Business Days | Market Approach, Backsolve |
| Series A | $800 | 3–5 Business Days | OPM Backsolve on Preferred |
| Series B / C | $1,200 | 3–5 Business Days | OPM Backsolve + DCF Weighted |
| Growth / Late Stage | Custom Quote | 4–7 Business Days | DCF + Market Comparables |
| Pre-IPO | Custom Quote | 5–10 Business Days | Public Market Comps + DCF |
| Complex Cap Structure | Custom Quote | 4–7 Business Days | OPM, PWERM, Binomial Models |
Pay After Draft Review
Trusted by Big 4 Auditors, Investors, Attorneys, and Courts
Transaction Capital LLC also provides post-valuation audit support — assisting clients through IRS inquiries, auditor questions, and investor due diligence at no additional charge.
Big 4 Audit Firms
409A reports aligned with IRS, SEC, USPAP, and AICPA standards — accepted without additional scrutiny.Venture Capital and PE Investors
Independent FMV documentation satisfies investor due diligence and LP reporting requirements.
Corporate Attorneys and Legal Advisors
Defensible, credentialed reports support equity plan documentation and shareholder agreement filings.Boards and Compensation Committees
Audit-ready FMV supports board approval of option grants and governance documentation.
Thousands of Businesses. One Standard of Quality.
Join thousands of startups, growth-stage businesses, and private companies that rely on Transaction Capital LLC for 409A valuations that hold up when it matters most.
Do Not Take Our Word for It.
Transaction Capital LLC delivered a high-quality Fair Market Value (FMV) analysis with exceptional responsiveness, professionalism, and depth. The team communicated clearly throughout the process and provided strong transparency around their methodology, allowing stakeholders to understand not just the conclusions, but the rationale behind them.
The work delivered by TXN Capital LLC on the IVS 105 valuation for our deeptech startup demonstrates great quality. Their clarity in documenting assumptions and methodologies ensures transparency and ease of understanding.
Working with Gaurav at Transaction Capital LLC for our 409A valuation was seamless and professional. He delivered a thorough, defensible report quickly and explained every detail clearly. Highly recommend for any startup seeking a reliable and efficient valuation partner.
Transaction Capital LLC, led by Dr. Gaurav, is truly the best in the business valuation space. I’ve seen the results firsthand — working with anyone else would be a waste of money. Believe me, they are the best.
Gaurav is very knowledgable in his field and was super helpful in his response and explanations. He finished the contract well before the deadline! Highly recommended. Thanks Gaurav
We got the Financial Model made by Gaurav which included all the standard things. Gaurav was helpful in explaining all the complex lingos and make it simple for us to understand. Strongly recommend him for getting FM made
Best 409A Valuation Services in the USA
Transaction Capital LLC provides certified 409A valuations across all 50 US states. Headquartered in New York, with active engagements in Silicon Valley, Los Angeles, Chicago, Houston, Dallas, Atlanta, Austin, Boston, and beyond.
Our team combines the methodological depth of a national firm with the responsiveness and direct access of a boutique practice. You work directly with your credentialed appraiser — from the first call to the final signed report.
