• 409A Valuations

     
  • 409A valuation opinions from a professional third-party on the fair market value of your private company's common stock.

    SVB Analytics understands the unique challenges private companies face in complying with tax and financial reporting requirements. Private companies are required by the IRS (Section 409A) to show that their common stock options are issued at fair market value, and therefore must conduct a formal valuation opinion at least once every 12 months to avoid potential tax penalties. They also must use the fair-value method of accounting for stock-based compensation such as stock options to comply with the Financial Accounting Standards Board rules (ASC 505 and 718).

    Our commitment to quality provides clients with a well-documented, auditable valuation report that can be used for both tax and financial reporting purposes. Our understanding of a client's business and its position in the industry, as well as strict adherence to industry-standard valuation and allocation techniques, enables clients to rest assured that their third-party valuation opinion is audit-defensible.


    The 409A Valuations Leader for Venture-Backed Companies 

    SVB Analytics, an affiliate of Silicon Valley Bank, has performed more than 7,000 valuation opinions for venture-backed private companies since 2006. We use this deep experience to provide the most informed value indicators to help private companies efficiently comply with regulations and requirements.

    • Better insights: SVB's focus on technology, life science, and cleantech companies for more than 25 years allows us to identify, observe and analyze trends better than any other valuations provider.
    • Deep relationships with auditing firms: We work closely with the Big Four accounting and auditing firms, as well as with regional firms around the country, so we can understand and rapidly adapt to changing audit requirements and valuation best practices.
    • Strict adherence to accepted guidelines: Our opinions adhere to the American Institute of Certified Public Accountants (AICPA) guidelines in enterprise valuation and allocation methodologies.
    • Scalable solutions: We have the capacity to complete high-quality work for any sized company — from early stage to acquisition or IPO, and beyond — in a timely manner.
    • Successful results: Every major audit firm has reviewed and approved our work.

    Auditable Valuation Reports

    • Methodologies sanctioned by the AICPA Practice Aid and that conform with IRS regulations
    • Industry-standard valuation and allocation techniques
    • A thorough, well-documented and auditable report that can be used for both tax and financial reporting purpose
    • Support from our engagement partners during your audit process

    Appropriate Comparable Company Selection

    • Derived from both qualitative and quantitative factors relevant to the technology, life sciences and cleantech sectors
    • Supported by extensive analytics on the selected guideline companies to assist our clients in benchmarking the valuation of their companies

    Tailored Allocation Methodologies

    • Income / market / cost approaches
    • Current Value Method (CVM)
    • Probability Weighted Expected Return Method (PWERM)\Option Pricing Method (OPM)
    • An option pricing model and waterfall analysis that accounts for the rights and preferences of the preferred shareholders
    • Probability-weighted scenario modeling analytics, which may better reflect the distribution of potential outcomes for companies in certain industry sectors such as life science and cleantech

    Accounting for Mergers and Acquisitions

    Stay in compliance with accounting rules for mergers and acquisitions. New regulations approved by the Financial Accounting Standards Board include significant changes in reporting requirements for acquired assets and liabilities. SVB Analytics offers expert ASC 805, ASC 350 and ASC 360 analyses to ease the valuation and reporting processes and minimize potential challenges by external auditors or the SEC.

    For more information on these services please click here.

     

  • 409A Select Clients

    The expertise and experience SVB Analytics provided during the 409A valuation process was extremely helpful.  We were able to get through this complicated process efficiently enabling me to focus on growing my business rather than compliance. 
    Jack Chiew, Corp Controller
    SVB Analytics has been great to work with in 2010. The support and products for both CapMx and 409A valuations have been outstanding and very helpful to Calisolar as we continue to grow our business.
    John Beaver, CFO
    SVBA’s experienced and sector focused valuation team has provided us with excellent quality reports over the last few years. The team is very professional, knowledgeable and capable.Reports are delivered on time and their response time on questions is excellent.Their work is known to and respected by our auditors, which takes as much pain out of the valuation process as possible.Along with the web based software solution CapMx which has been proven to be an incredibly easy tool for managing our stock options, not only are we compliant ready but also confident  we have chosen the best solution in the market.
    Steven K. Shevick, Chief Financial Officer
    When we needed a valuation for our company, our accounting firm recommended SVB Analytics. From the beginning, the team members at SVB were very responsive to my calls and emails, and provided clear and concise answers to my questions. The Analytics team was friendly, and provided information on a timely basis. The valuation they produced was detailed, and was competitive in pricing to the rest of the industry.
    Stephen Spiegelberg, Ph.D., President
    The 409A valuation process can be daunting for a young company. We chose to work with SVB Analytics because it is a trusted leader in the industry and it knows startups better than anyone else. SVB helped us navigate the process with ease and delivered a valuation that was comprehensive at a reasonable price.
     
    Daniella Reichstetter, Founder + CEO
    From the beginning of the process the SVB Analytics team was flexible and easy to work with; they explained the process and delivered on time a professional and high quality report that I can present to my auditors. In fact we have been so pleased with the service we receive that we have engaged them every time we have had the need for a valuation and definitely look forward to working with them in the future.
    Geoff Lapres, Vice President & CFO
    When QuorumLabs needed our first outside valuation for IRC 409a, the preeminent reputation of SVB Analytics made them an obvious choice for the task. Their orderly process made gathering the required information straightforward and efficient. After thorough analysis, they provided a valuation report that was prompt, fair, and well supported.
    Larry Lang, President and CEO, QuorumLabs
    We continue to be extremely happy with SVB Analytics as our valuation provider. We recently finished our second 409A valuation and could not be happier with the process. The team assigned to our work was very responsive and took the time necessary to thoroughly understand our business structure and financial model. I also felt SVB provided first class service at a very competitive fee. SVB has consistently met or exceeded every time constraint and produced a professional product. I would recommend SVB to any firm needing a high quality valuation that will be accepted by their CPA firm and board members.
     
    Mark Legg, CFO
    SVB Analytics was recommended to perform our 409A valuation by our investors. This is the second time that the company has used SVB Analytics for a 409A valuation and the service the second time was as good as the first. The SVB team was friendly, efficient, and always attentive - they got the job done without any fuss. Just what we needed!No time was lost in the end-to-end process of performing the valuation appraisal and delivering the final document. It is safe to say that SVB Analytics did what they committed to do and delivered an outstanding service.   
    Paul Phillips, Chief Executive Officer

    Rapid Micro Biosystems has been using the SVB Analytics Valuation service for a number of years now. The reports we received for our 409A and warrant valuations keep us in line with regulations, helped us complete our audit and are consistently excellent – the valuation team does an outstanding job!


    Mike Mullen, Chief Financial Officer
    After interviewing a number of firms, we and our accountants decided that SVB Analytics was the best choice for our 409(a) valuation.  The team we worked with at SVB was professional, thorough and efficient.  The whole process went smoothly and we were very happy with the work product.  We would definitely recommend SVB Analytics to other companies with valuation needs.
    Eric Golden, President and CEO
    At my first start up, Affinity Labs, SVB Analytics’ transparency about the 409A valuation pricing and process won me over. At my second venture-backed company, Altius Education, I again chose SVB Analytics. Over the past 2 years at Altius, my SVB Analytics team has proven to be both highly responsive and stable at the same time. My input is efficiently gathered and considered and I don’t have to spend much time training or retraining the team about my business. I highly recommend their services to other CFO’s.
    Curtis Atkisson, CFO
    SVB Analytics is proven to be a great solution for startups. I have worked with the team in my past startup as well as in my current and have been delighted with the service I have received. They understand the market and the pricing methodologies as no other and were very efficient with the use of my time. In the end I received a solid, reliable and defendable 409A report.
    Shirish Nadkarni, CEO & Co-Founder
    I have found the working with the SVB Analytics team is a simple and efficient process. They are great to work with because they explained the process clearly, made efficient use of my time on the calls and met our delivery time requirements for the 409A valuation. The team was knowledgeable and I felt comfortable with their expertise of my market. The final report I received was well supported and very well designed.
    Scott Blouin, CFO