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DEFENSIBLE, USPAP-COMPLIANT 409A APPRAISAL REPORTS — QUALIFIED FOR THE IRS, INSURANCE AGENCIES, LENDERS, AND MORE.
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Owner & CEO
Joe founded AppraiseItNow to make a certified, USPAP-compliant appraisal as simple to order as anything else online. A former Bain & Company strategy consultant, Joe leads the entire team and specializes in strategy, growth, and the firm's tech capabilities.
Business Valuation Expert & Appraiser
ASA, ABV, and CFA charterholder. Since 2016 Justin has valued businesses for estate and gift tax, purchase price allocations, fairness opinions, lending, and buy-sell agreements, across manufacturing, services, retail, and pre-revenue biotech.
Business Valuation Expert & Appraiser
Accredited Senior Appraiser with the American Society of Appraisers. Raymond values capital stock, business enterprises, stock options, and intangible assets.
Client Success Manager
Manages each engagement from the first enquiry to the delivered report, and keeps you posted at every step along the way.
American Society of AppraisersAccredited Senior Appraiser
The Appraisal FoundationAuthorized by Congress as the source of appraisal standardsAppraiseItNow provides independent 409A valuations for private companies that need the fair market value of their common stock before issuing equity compensation, as a specialized component of our business valuation services.
Why it is required
Section 409A of the Internal Revenue Code requires the valuation before stock options, restricted stock units, and other equity awards are priced. A company that skips a qualified 409A valuation exposes itself and its employees to significant tax penalties.
Who prepares it
Our 409A engagements are conducted by credentialed professionals with deep experience valuing startup and growth-stage companies, from early-stage startups to pre-IPO businesses.
What we work from
A 409A valuation is built from records the company already keeps:
We value the common stock of private companies at every stage, and the methodology shifts with the company's capital structure, its financing history, and the event that triggered the valuation.
By stage
The company's stage sets the starting point for the analysis:
By structure and event
Capital structure and corporate events shape the analysis as much as stage does:
We serve startup founders, CFOs, general counsel, and equity plan administrators who need a qualified 409A appraisal to stay compliant with IRS requirements, and the attorneys, CPAs, and venture capital advisors who coordinate valuations for portfolio companies and clients.
Inside the company
The people who own the cap table and the option grants engage us directly when a grant, a round, or a milestone means the strike price needs a fresh, qualified basis.
Outside advisors
Law firms, accounting firms, and venture capital advisors bring us 409A work on behalf of portfolio companies and clients who need the valuation done independently.
What clients say we are known for
Across 80+ published AppraiseItNow reviews the picture is consistent: every one is from a client who paid us for an appraisal, and the three things they raise most often are that they would hire us again, how quickly we answer, and how much research is visible in the report.
Responsive, professional, first class deliverables -- especially considering that that the appraised assets are extremely complex financial assets with little by way of comps. The deliverable satisfied my accountants and advisers as being more than adequate to support the valuation needed to complete a conversion to a Roth IRA
Business Valuation Appraisal for IRA Conversion
Joe and Aron were extremely impressive - the entire process went very smoothly. They were always quick to respond to any questions I had and could not have been more helpful. They were aware of some tight time restrictions I had and made sure I received my reports in a timely fashion. I highly recommend them to anyone needing a valuation.
Business Valuation Appraisal for Charitable Donation
I used AppraiseItNow to examine a contribution to a foundation. Their work was quick, thorough, and easy to work with, as they’ve developed a simple system for uploading documents. I plan to use them again.
Business Valuation Appraisal for Charitable Donation
The team was highly knowledgeable, helpful, and efficient. I highly recommend their appraisal services, especially for private companies.
Business Valuation Appraisal for IRA Conversion
I found them professional & responsive. The report was quite thorough as well.
Business Valuation Appraisal for Charitable Donation
From the start they were very responsive, price competitive, and had a quick turn around time. Thank you so much to Joe who was very sweet in responding to my emails; I am looking forward to utilizing AppraiseItNow for many years to come.
Submit estimate or list of items for our review.
We'll share a flat fee quote for your approval.
Submit details on all of your items for our review.
We'll conduct detailed research and prepare a written USPAP-compliant report.
Delivery of your report and supporting documents (e.g., signed IRS Form 8283) by email.
Given the USPAP-compliant nature of AppraiseItNow’s appraisal reports, we prepare our deliverables for major legal, tax, and financial reporting purposes for individual and commercial clients.
Popular uses of our appraisal reports include:
Appraisers use three recognized approaches: the market approach (guideline public company multiples and M&A transactions), the income approach (discounted cash flow), and the asset approach (fair value of underlying assets less liabilities). For venture-backed companies, the most common method is the backsolve or prior transaction method, which infers enterprise value from a recent preferred stock financing round; practitioner surveys attribute over half of all 409A valuations to it. We select and combine approaches based on the company’s stage, capital structure, and available data.
At least annually, or sooner after a material event such as a new financing round, a major acquisition, or a substantial change in revenue. Continuing to grant options at an old strike price after value has moved can make those grants discounted deferred compensation under Section 409A, forcing repricing or cancellation. We recommend scheduling the refresh before the next planned option grant, not after.
Recipients can face immediate income inclusion, a 20% additional federal tax, and interest penalties under Internal Revenue Code Section 409A. The company may then have to reprice or cancel the affected grants. This is why the fair market value must be set on or before the grant date using a contemporaneous, good-faith valuation rather than an informal board estimate or investor term sheet.
No. The regulations require a reasonable application of a reasonable valuation method, and income, market, and asset approaches are all recognized. Blanket claims that revenue multiples are mandatory or that discounted cash flow is the only compliant method are incorrect. The safe harbor does expect a written valuation report prepared by someone with significant knowledge, experience, education, or training in valuation.
A credible report documents the capital structure and the rights of each security class, then allocates value using a recognized model such as the Option Pricing Model (OPM) or the Probability-Weighted Expected Return Method (PWERM), reflecting liquidation preferences, conversion rights, and participation features. Weak reports divide enterprise value by fully diluted shares as if all classes were equal, which is far more likely to be challenged by auditors or the IRS.
