409A Valuation Services — Defensible, Audit-Ready 409A Reports

A 409A valuation is the foundation of equity compensation compliance. QuantPillar provides legally defensible 409A reports with transparent assumptions, full model files, and private-market comparables — available as an Express (48–72h) or Standard (7–14 day) service so you can grant options with confidence.

What is a 409A valuation?

A 409A valuation determines the fair market value (FMV) of private company common stock for tax and equity-compensation purposes under IRS Section 409A. It protects employees and the company from tax penalties by establishing a defensible strike price for stock option grants.

Who needs a 409A and when?

Startups & Private Companies

Issuing stock options to employees, advisors, or contractors.

Major Events

Completing a new option grant, major financing, or material change in operations.

Founders & CFOs

Preparing for fundraising or M&A transactions.

Investors & Counsel

Requesting an independent 409A for diligence or transaction support.

Timing triggers:

  • New option pools or fresh grants (quarterly or as needed)
  • Post-financing (required to reflect new preferred stock pricing)
  • Significant business events (M&A, reorganization, material revenue changes)

Why choose a QuantPillar 409A?

Defensible Methodology

We document assumptions, comparables, and reconciliation steps so counsel and auditors accept the opinion.

Speed & Options

Express (48–72h) for time-sensitive grants; Standard (7–14d) for deeper diligence.

Full Transparency

Model files (Excel/Sheets), data appendices, and audit trail included.

Market Context

We use QuantTerminal™ comps and PillarIndex™ to justify multiples and ranges.

CFO & Counsel-Friendly

CFOs validate numbers in QuantCore™; counsels get a privilege-aware deliverable stream.

Our 409A methodologies

We apply standard, defensible valuation approaches with clear rationale — often blending methods where appropriate:

Market (Guideline Public/Private Comps & Multiples)

Use for later-stage or revenue-generating companies. We pull private comps from QuantTerminal™ and adjust for size, growth, and liquidity.

Income (DCF / Discounted Cash Flow)

Forward-looking cash flows discounted for early-stage or predictable businesses.

Option-pricing (Modified Black-Scholes / Option Pricing Model)

Used to derive common stock value from preferred price, especially for VC-backed rounds.

Hybrid Approaches

Often combine OPM + market multiples with scenario weighting for robustness. Each report explicitly states which method(s) were used, why, and how weights were chosen.

QuantPillar 409A delivery options & timelines

Express

Express 409A — 48–72 hours

Quick, defensible opinion for time-sensitive grants. Requires complete cap table + latest financing terms + recent financials.

  • Short methodology & valuation conclusion
  • Model file and data appendices
Standard

Standard 409A — 7–14 days

Full analysis, deeper comps search, sensitivity analysis, and a multi-scenario valuation annex. Suitable for pre-fundraise validation or new financing.

  • Comprehensive analysis & comps
  • Sensitivity & scenario analysis
Enterprise

Enterprise / Litigation 409A (custom)

For complex capital structures, IP-intensive valuations, or litigation support — timeline quoted per scope.

What we deliver

Every QuantPillar 409A includes:

Executive summary & valuation conclusion (one page)
Full 409A opinion report with assumptions and method rationale
Reproducible model file (Excel/Google Sheets) with scenario tabs
Data appendix & comps list (from QuantTerminal™) with provenance and confidence scores
Cap table reconciliation & dilution schedules
Audit trail & import logs (who uploaded what + timestamps)
Optional: counsel-review version with redactions to preserve privilege

Typical inputs & documents we require

To deliver a fast, defensible 409A we request:

Cap table (CSV preferred) — pre/post preferred terms if applicable
Latest preferred stock financing terms (term sheet / purchase agreement)
Recent P&L, balance sheet, cash flow (last 12 months + YTD)
Business plan / forecast (12–36 months) or high-level KPI schedule
Recent investor presentations and material contracts
Any prior 409A or valuation reports (if available)

Pricing guidance

Express Professional

$2,500 – $6,000

48–72h delivery. Simple to moderate capital structure.

Standard Professional

$12,000 – $35,000

7–14d delivery. Series A-C with comprehensive analysis.

Big 4 / Enterprise

$50,000+

Late-stage, Pre-IPO, complex structures. Custom quote.

Pricing varies by cap table complexity, data availability, and whether legal review / testimony is required.

What is a 409A valuation for startups?

A 409A valuation sets the fair market value for private company common stock so founders and employees can receive stock options without immediate tax penalties. It's essential for startups that issue equity compensation.

How long does a 409A take?

At QuantPillar you can get an Express 409A in 48–72 hours or a Standard 409A in 7–14 days depending on complexity and data completeness.

How much does a 409A cost?

Typical costs range from $2,500-$6,000 for Express Professional services to $12,000-$35,000 for Standard Professional analyses. Big 4 firms charge $50,000+.

Sample 409A Table of Contents (TOC)

  1. Executive Summary & Opinion
  2. Introduction & Purpose of Report
  3. Company Background & Facts Reviewed
  4. Documents Reviewed & Data Provenance
  5. Industry & Market Overview
  6. Methods & Valuation Approach (with justification)
  7. Financial Forecasts & Key Assumptions
  8. Valuation Calculations (OPM / DCF / Market Comparables)
  9. Sensitivity & Scenario Analysis
  10. Reconciliation & Conclusion of Value (Common Stock FMV)
  11. Cap Table Impact & Option Strike Price Calculation
  12. Limitations & Reliance on Information
  13. Exhibits & Data Appendix (model files, comps list, source links)

How QuantPillar makes 409As defensible

Data provenance: Every source is tagged, timestamped and attached to the appendix
Comps from QuantTerminal™: proprietary private-market comparables with confidence scoring
Audit trail: version history for models and assumptions, with CFO approvals via QuantCore™
Counsel-friendly deliverables: redacted and privilege-aware variants for negotiations or filings
Expert review: senior valuation experts review outputs and sign opinions

Common 409A pitfalls — and how to avoid them

Using stale preferred price

Always reconcile to most recent financing terms and documented preferences

Insufficient documentation

Missing forecasts, incomplete cap tables, or unsigned term sheets weaken defensibility

Ignoring market context

Failing to use comparables or market signals produces unsupported conclusions

Over-reliance on a single method

Best practice: document why chosen method(s) are most appropriate and include sensitivity analysis

Compliance & audit checklist

  • Engagement letter signed and scope defined
  • Conflict check & independence confirmation
  • Data intake & chain-of-custody recorded
  • Model versioning & audit log
  • Report includes limitation of liability and reliance clause
  • Final opinion signed by qualified valuation expert

Integrations & workflow with QuantPillar

Step 1 — Intake

Submit documents through secure portal (or order Express 409A)

Step 2 — Data harmonization

We connect QuickBooks/Stripe/Bank feeds or accept file uploads; CFO validates via QuantCore™

Step 3 — Comps & index

QuantTerminal™ supplies market comparables and PillarIndex™ context

Step 4 — Analysis & model

Experts build model and tests; scenario review with CFO & counsel

Step 5 — Delivery

Final 409A report + model + provenance; optional counsel-review version

Step 6 — Publish / record

Integrate valuation into QuantCore™ as a timestamped 'defensible snapshot'

Sample client timeline

Express

Express 409A (48–72 hours)

  • Day 0: Intake received + conflict check
  • Day 0–1: Data validation & cap table reconciliation
  • Day 1–2: Comps pull from QuantTerminal™, model build
  • Day 2–3: Draft review with CFO/counsel → final report delivered
Standard

Standard 409A (7–14 days)

  • Day 0: Intake & scoping
  • Day 1–5: Deep comps & sensitivity analysis
  • Day 6–10: Draft review and counsel revisions
  • Day 10–14: Final delivery and file handoff

Frequently Asked Questions

Request Your 409A Valuation

Fill out the form below and we'll confirm scope and next steps within 12 hours.

Avoid risk. Grant options with confidence.

Order a QuantPillar 409A and get an audit-ready opinion that counsel and investors accept.