ROBS Business Valuation Services
Globally Certified (CVA • ASA • ABV® • MRICS)
Valuation Experience
Valuations Completed
Industries Served
3-5 Days
Why an Independent ROBS Valuation Matters
A ROBS arrangement lets an entrepreneur roll retirement funds into a new C-Corporation, which then issues stock to a qualified 401(k) plan to fund a business purchase or startup. That stock purchase must occur at fair market value, and the value must be reassessed at least once each year for as long as the plan holds it.
The IRS runs a dedicated Rollovers as Business Start-Ups Compliance Project and treats missing or deficient stock valuations as a core audit issue. A weak or unsupported valuation can expose the transaction to prohibited transaction penalties under ERISA Section 408(e), put plan qualification at risk, and trigger an excise tax that starts at 15 percent of the amount involved.
Transaction Capital LLC prepares a full, documented valuation analysis for every ROBS engagement rather than a one-page certificate or formula-based estimate. Each report is prepared and signed by a credentialed appraiser, giving your CPA, ROBS administrator, and ERISA counsel a defensible record to stand behind.
Our ROBS Business Valuation Services
Get an Independent ROBS Valuation for Your Business Today.
ROBS Valuation Methods We Use
| Approach | Best For | Key Methods |
|---|---|---|
| Income Approach | Companies with comparable public companies or precedent transactions | Guideline public company multiples, guideline transaction method |
| Market Approach | Operating businesses with supportable earnings or forecasts | Discounted Cash Flow, Capitalization of Earnings |
| Asset Approach | Newly formed, asset-intensive, holding, or early-stage companies | Adjusted Net Asset Value, cost-to-duplicate |
When Do You Need a ROBS Valuation?
- Initial ROBS Transaction - Establish the FMV of the C-Corporation shares being purchased by the plan and support the initial stock issuance
- Annual Plan Year Valuation - Determine the current value of privately held employer stock for annual plan administration and Form 5500-series reporting, since private shares have no observable market price
- Additional Investment or Share Transaction - Update the valuation when additional shares are issued, purchased, sold, or another material equity transaction changes the plan's ownership
- IRS or DOL Inquiry - Provide documented FMV support if the IRS ROBS Compliance Project or a DOL examiner requests it
- Form 5500 Filing Deadline - Confirm current plan asset values ahead of the annual DOL filing
- ROBS Stock Buyback - Determine the current FMV of plan-held shares for repurchase. The price should reflect FMV on the valuation date, not the original investment.
- ROBS Exit or Plan Termination - Establish an independent share value when unwinding the ROBS structure or purchasing the plan's interest in the company
Not Sure When Your ROBS Valuation Needs Refreshing?
ROBS Valuation by Transaction Type
Methodologies and compliance rules vary significantly by intellectual property category:
| Situation | Typical Methodology | Key Consideration |
|---|---|---|
| Initial Purchase, Pre-Revenue Startup | Asset Approach or Cost-to-Duplicate | No operating history; value reflects contributed capital, assets, and business plan |
| Initial Purchase, Existing Business or Franchise | Income and Market Approach | Purchase price allocation and target financials anchor the FMV conclusion |
| Annual Valuation, Operating Company | Income Approach | Historical earnings, normalization adjustments, and forecasts support FMV |
| Stock Buyback | Income and Market Approach as of buyback date | Repurchase price must reflect current FMV, not the original rollover amount |
| Additional Equity Transaction | Updated Income and Market Approach | New shares change per-share value and the plan's ownership percentage |
| Exit or Plan Termination | Multi-approach consolidated analysis | Full enterprise value required for final participant allocation |
Benefits of a Professional ROBS Valuation
Find the Right Value for Your ROBS-Funded Business with Transaction Capital LLC.
How Our ROBS Valuation Process Works
Our process prioritizes speed without sacrificing defensible documentation. Standard engagements are delivered in 3–5 business days.
Free Consultation
Discuss your ROBS structure, business stage, and timeline with your assigned appraiser. Receive a flat-fee quote with no commitment required.
Document Collection
We provide a tailored checklist covering financials, cap tables, and plan documents.
Analysis & Modeling
Apply the appropriate Income, Market, or Asset approach based on your company's stage and financial profile.
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 or DOL inquiry support are included at no additional charge.
What Your ROBS Valuation Report Includes
- Executive Summary - FMV conclusion, effective date, scope, and purpose
- Company and Transaction Analysis - Business overview, ROBS structure, ownership, and purpose of the valuation
- Financial Analysis - Historical and current performance, balance sheet review, and normalization adjustments
- Industry and Market Analysis - Industry conditions, comparable companies, transactions, and benchmarks
- Valuation Methodology - Detailed application of the Market, Income, and/or Asset Approach
- Fair Market Value Conclusion - Equity value and, where applicable, FMV per share or plan ownership interest
- Compliance Statements - USPAP, SSVS, and NACVA certifications
- Appraiser Certification - Signed by an ABV®, ASA, CVA®, or MRICS credentialed professional
- Audit Defense Package - Supporting schedules and source data suitable for IRS or DOL review
ERISA Adequate Consideration and IRS ROBS Compliance Requirements
Independent Qualified Appraiser
Annual Valuation Requirement
Prohibited Transaction Excise Tax
No Commission to the Plan
Adequate Consideration Standard
Form 5500 Penalties
IRS ROBS Compliance Project
Compliance Standards We Follow
USPAP
AICPA SSVS No. 1
NACVA Standards
IVS
ERISA Section 408(e)
IRS Revenue Ruling 59-60
Insights From Real Valuation Engagements
2,500+ Valuations. 50+ Industries. Deep Expertise in Each.
Why Choose Transaction Capital LLC?
Big 4 Quality. Boutique Speed. Zero Compromise.
| Criteria | Transaction Capital LLC | Large National Firms | Generalist Accountants |
|---|---|---|---|
| Credentials | ABV, ASA, CVA, MRICS | PASSES - High Cost | PARTIAL, varies by firm |
| Turnaround Time | 3-5 Business Days | 4-8 Weeks | 2-6 Weeks |
| Pricing Model | Flat Fee, Starting at $500 | Hourly or High Fixed Fee | Varies, Rarely Flat Fee |
| Pay After Draft Review | ✓ | Typically Not Offered | Typically Not Offered |
| ERISA Adequate Consideration Documentation | PASSES, always documented | ✓ | PARTIAL, varies by firm |
| IRS Compliance Project Readiness | PASSES, included | Available, often additional scope | PARTIAL |
| Post-Valuation Audit Support | PASSES - Included | Often additional scope | Varies by firm |
Pay After Draft Review
You review quality and accuracy before paying a single dollar. No other valuation firm offers this.
Trusted by ROBS Administrators, Attorneys, and Fiduciaries
ROBS Plan TPAs and Administrators
Independent FMV support for accurate Form 5500 filingsERISA and Business Attorneys
Defensible reports for buyback, exit, and plan documentation
CPAs and Tax Advisors
Valuation support for corporate books and tax positionsPlan Trustees and Fiduciaries
Adequate consideration documentation to satisfy the prudent expert standard
Thousands of Businesses. One Standard of Quality.
Join thousands of enterprises and fast-growing tech firms that rely on Transaction Capital LLC for defensible valuations built to withstand: Financial Audits, Tax Authority Reviews, Major Funding Rounds, Court Litigation
Do Not Take Our Word for It.
Transaction Capital LLC is consistently rated on G2, Trustpilot, and Clutch by corporate founders, CFOs, financial directors, and transaction attorneys across the United States.
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
