Establish Your Startup’s True Value with Kruze Consulting’s 409A Valuation Services
Kruze Consulting delivers audit-ready 409A valuations that keep your option grants compliant and your employees’ equity protected.
A 409A valuation sets the defensible fair market value of your startup’s common stock, the price your option grants are struck at. The IRS requires one before you issue stock options and again every 12 months or after any material event, like a priced round. Get it wrong, and your team faces immediate taxes and penalties under Section 409A, so the valuation has to be independent and audit-ready. Kruze Consulting manages the full engagement and pairs you with an independent appraiser who delivers a report your board and future acquirers will trust.
Every option grant you issue has to be priced at or above the common stock FMV from a current 409A, or the grant is out of compliance. A fresh valuation is required before your first stock option grant, then a refresh every 12 months or whenever a priced round resets your value. Skip it, and the IRS can treat the discount as deferred compensation, which lands the tax bill on your employees, not the company.
Key Benefits Of 409A Valuations From Kruze
Fast Turnaround
Get your 409A valuation in just 10 business days.
Audit-Ready Reports
Our valuations follow AICPA and USPAP guidelines, ensuring they’re audit-ready.
Cost-Effective
Our flat rate pricing is an economical option for VC-funded startups, unlike other companies that require you to pay monthly recurring charges.
How Kruze delivers your 409A
Here is how the engagement actually works. Kruze Consulting manages your 409A end-to-end and advises on the equity-compensation questions surrounding it, from option pricing to board approval. The valuation itself is produced by an independent, qualified appraiser, making the report defensible if the IRS or an acquirer’s diligence team ever examines it.
Our valuation partners are former Big 4 valuation leaders and investment bankers who hold ASA or ABV credentials. You get the independence auditors require, and the startup context generalist firms miss.
Our 409A Valuation Services
Comprehensive Valuation
We provide a thorough analysis of your financial history, model, and intangible value.
Expert Appraisers
Our valuation partners are former Big 4 valuation partners and top investment bankers.
In-Depth Reporting
Receive a 30+ page detailed 409A report, ready to share with investors and your board of directors.
Case Study
Sema Technologies
Sema Technologies partnered with Kruze Consulting for expert startup accounting, tax services, financial modeling, and accounts receivable management.
"For a company of our size and stage, Kruze delivers very fair value at the cost."
Case Study
SnapAttack
Discover how SnapAttack, a cybersecurity leader, achieved acquisition by Cisco with Kruze Consulting’s expert support.
"We get all we need at a basic level, since we’re still a small but growing startup. Then, as needed, we can plug into the Kruze team for additional assistance."
Frequently Asked Questions
How often do I need a 409A valuation?
409A valuations are valid for 12 months unless there’s a material event like a new funding round.
What's included in the 409A report?
The report includes a thorough analysis of your financials, an explanation of the valuation methodologies tailored to your situation, and follows AICPA and USPAP guidelines. You get a detailed report that complies with IRS regulations and is defensible if audited.
How long does a 409A valuation take?
Kruze Consulting’s valuation partners can complete a 409A valuation in 10 business days from the date all company information is submitted.
Who should conduct my 409A valuation?
Kruze Consulting’s valuation partners are qualified, independent third-party appraisers with experience in startup valuations, and hold certifications such as ASA (Accredited Senior Appraiser) or ABV (Accredited in Business Valuation).
What drives the cost of a 409A valuation?
Your 409A cost scales with your company’s complexity. Stage, cap table structure, number of funding rounds, and whether you carry instruments like convertible notes all factor in. Kruze Consulting uses flat-rate pricing so you know the number up front, with no recurring charges buried in a bundle.
Why are cheap 409A valuations risky?
A bargain 409A can cost far more than it saves. Acquirers and auditors scrutinize valuation methodology during diligence, and a thin or aggressive report can trigger repricing, tax exposure for your team, or a stalled deal. A defensible valuation from a qualified appraiser is cheap insurance against all three.
Latest from 409A Valuation Services
We provide accurate, defensible valuations and expert insights to help startups manage equity compensation compliance while staying investor-ready for their next funding round.
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