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Since the adoption of the Sarbanes-Oxley Act, The Brenner Group has provided independent third-party valuations for 409A compliance and FAS 123R compliance. To determine value, our professionals analyze each client's business and financial plans, history, and projections. We have been engaged by more than 200 clients to value securities and options for tax, financial reporting requirements and other purposes.
What does 409A mean to my company?
Under IRC Section 409A, privately owned companies are now required to establish that stock options are not being issued below fair market value at the time granted – a potential tax liability for both the company and the employee. Companies either considering or currently issuing stock options to employees should consider an independent valuation -- no less frequently than once every 12 months or more frequently if there is a positive change in the business which could result in a change of the implied market value of the common stock.
FAS 123R
The (Financial Accounting Standards Board) Statement No. 123(R) mandates that affected companies must expense stock options and other forms of equity based employee compensation. Among other things, in the process they must track all equity compensation activity, calculate fair value, and adjust employee income tax deductions. Depending on the number of employees receiving awards, the frequency of grants, and the variability of the terms – ongoing administration and compliance can pose a significant burden.
Contact us now for more information on executing your 409A or FAS 123R Valuation Opinion.
White Paper:
 Valuation Considerations for High Technology Companies
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