IRC 409A Valuation Services

Eton is one of the startup world’s leading 409A valuation providers. We specialize in fast, defensible valuations that ensure you’re compliant.

Trusted By Over 1,000 Companies

Our 409A Valuation Process

Day 1
Day 2
Day 8
Day 10
Forever
Information Collection
Valuation Modeling and Analysis
Draft Report Delivered; Client Review and Approval
Final Report Delivered
Audit Support

Our 409A Valuation Services

Since 2010, Eton has delivered 3,000+ audit-defensible 409A valuations. We’re a boutique team of Stanford Law lawyers and Ex-Big 4 Consultants who obsess over great service.

When you’re offering equity incentives to employees, we know that accurate, compliant valuations are of critical importance to you. We also know you want them fast and at a reasonable cost—which is the promise we deliver.

Independence

Eton does not sell software. Its sole focus on valuation and valuation advisory ensures impartial, objective judgments, maintaining compliance with IRS regulations and safe harbor protection.

Tailored Approach

Our team of experienced experts uses a combination of proven methods and proprietary tools to deliver data-driven valuations, considering each company's financial performance, financing history, market trends, and comparable public and private companies.

Proven Track Record

Since 2010, Eton has performed thousands of independent, audit-defensible valuations, establishing itself as a "go-to" valuation services firm for IRC 409A and ASC 718.

Unparalleled Expertise

Founded by securities lawyers from top law schools / law firms and staffed with finance professionals trained by the Big Four and other prominent financial services firms, Eton brings intellectual and quantitative rigor unmatched by others.

"As a former Gunderson lawyer, I co-founded Eton to bring the precision, efficiency, and the obsessive client service of corporate securities law to business valuation. I'm especially proud that our worldwide team of Big 4 trained CFAs has adopted that client service mantra wholeheartedly.

Our entire focus is on delivering audit-defensible, rigorous, and timely valuations without the inefficient back-and-forth of other firms. Client service is our religion. We always go the extra mile to overdeliver for every client."

Chris Walton, JD
President & CEO
Eton Venture Services
Previously at Gunderson Dettmer / Stanford Law

Testimonials

Talk to Us

FAQs

How much do your 409A valuation services cost?

Our 409a valuations cost between $2500 and $4000. Read our full article here to understand how costs work.

Our 409a valuation services take 10 days as standard. However, when needed, we can do it in as little as one day but an expedited timeline does come at a higher 409a valuation cost. Read more about our timelines here.

Companies can ensure their 409A valuations meet the safe harbor requirements by engaging qualified valuation professionals who are experienced in performing 409A valuations and are familiar with the applicable regulations. These professionals should use a reasonable method, reasonably applied, while considering all relevant factors and information. Companies should also maintain proper documentation of the valuation process and assumptions used. By following these best practices, companies can minimize the risk of non-compliance with Section 409A and avoid potential tax penalties.

Non-compliance with 409A valuation regulations can result in significant tax penalties for both the company and its employees. If the IRS determines that the exercise price of stock options is below the fair market value, employees may face immediate taxation on their options, plus a 20% additional tax, and potential interest charges. Companies may also face penalties for not properly withholding taxes and reporting non-compliant options.

Early-stage startups should perform their first 409A valuation before granting any stock options to employees or other stakeholders. By obtaining an accurate 409A valuation before issuing stock options, startups can ensure compliance with IRS regulations and minimize the risk of tax penalties. Additionally, startups should update their 409A valuations at least once every 12 months or more frequently if there are significant changes in the company’s circumstances or market conditions. Read about our 409a valuation process here.

A 409A valuation specifically assesses the fair market value of a private company’s common stock for tax and stock option purposes, whereas an enterprise valuation estimates the total value of a company, including its equity, debt, and cash. While both valuations provide insights into a company’s worth, they serve different purposes and may yield different results based on the methods and assumptions used.

Featured 409a Valuation Insights