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You want your 409a to be as low as possible without triggering an audit. This is not good advice.
by junofan 3y ago
You want your 409a to be as low as possible without triggering an audit. This is not good advice.
- toomuchtodo 3y agoYou want all available information to be able to determine a fair EV imho (valuation information, shares outstanding, cap table, etc). Otherwise, you’re getting sold on equity value that is aspirational or outright inaccurate so the business can scrimp on cash comp.
- junofan 3y agoA 409a is a very specific thing that proves nothing but timing and how good your provider was. For common stock, just multiply by 20% to get FMV.