This course covers 409A valuations -- why they’re necessary, how they’re performed, how companies use them, what other corporate events can impact the appraisal, and how frequently companies need to obtain one.
We begin with an overview of the reasons for obtaining a 409A valuation. We then explain, at a high level, how 409A appraisals are performed: This explanation covers both the assumptions required and the methodologies used within the reports. An entire section is devoted to the Black-Scholes Option Pricing Method for allocating equity value to individual securities. This is followed by a discussion of events that could impact the methodologies used in the report and the opined values.