Get $500 Off Your 409A Valuation

COVID-19 may have created an opportunity to lower your stock option exercise price. Now is a great time to update your 409A valuation.

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Act By June 30, 2020 To Get A $500 Discount

The COVID-19 pandemic has had a major impact on economic activity and company valuations. In hard economic times when you might be cutting employees, reducing salaries, and eliminating bonuses, granting stock options or updating an employee’s existing stock option exercise price might help offset some of the impact on your team.

Although no startup wants their valuation to go down, when it does happen as a result of external events, updating your 409A valuation could present an opportunity. Lowering the exercise price of your stock options to the new, lower fair market value ensures that employees receive shares that are fairly priced. No employee wants stock options that are “underwater” and “out of the money.”

In order to help you, Early Growth is offering a limited time $500 discount on 409A valuations.

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What Is A 409A Valuation & When Do I Need One?

Your equity is important to you, your employees, and your investors, but managing it can be complicated. Let us simplify.
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409A Valuations

When you issue stock or stock options to yourself or your employees, if you do it at a value other than "fair market value" then you are likely creating compensation and income. And we all know... where's there's income, there's tax.

In order to avoid unnecessary taxes, the IRS provides a "safe harbor" as long as you have a 3rd party determine the fair market value. That's what a 409A valuation is, and why you need Early Growth to help you.

Stock options are the most common case for 409A valuation, but there are situations where it's required. How do you know if you need one? If you answer “yes” to any of the following questions, it’s time to contact Early Growth for a 409A valuation:

– Are you trying to value the common stock of a company?
– Do you plan to issue stock options and set your strike price?
– Have you raised a new round of funding since your last grant date?
– Are you looking to sell IP from one company to another?
– Has it been 12 months since your last 409A?

Have more questions about 409A Valuations? Click below and read on.
Everything About... 409A Valuations

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