28 Enrolled
1.5 Hours (On-Demand)
Instructor for this course
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This course covers 409A valuations -- why they’re necessary, how they’re performed, how companies use them, what other corporate events can impact the appraisal, and how frequently companies need to obtain one. 

We begin with an overview of the reasons for obtaining a 409A valuation. We then explain, at a high level, how 409A appraisals are performed:  This explanation covers both the assumptions required and the methodologies used within the reports.  An entire section is devoted to the Black-Scholes Option Pricing Method for allocating equity value to individual securities.  This is followed by a discussion of events that could impact the methodologies used in the report and the opined values. 

Learning Objectives

  • Identify the reasons for obtaining a 409A valuation and the consequences of not obtaining one.
  • Explore the valuation process
  • Identify common misconceptions regarding 409A valuations.
  • Recognize events that could impact the contents and conclusions of 409A valuations.
  • Discover how frequently you need to obtain a 409A valuation.
Last updated/reviewed: April 20, 2018

5 Reviews (15 ratings)Reviews

4
Anonymous Author
Overall an excellent presentation. Two points for the future. 1) During discussion of the income approach, you mentioned the market approach would be covered next. that did not happen, as the session moved to "How is equity value determined?" 2) Unsure if possible but the "OPM" section was really hard to follow. You noted same, but I observe.
5
Anonymous Author
The information was presented in a manner that was easy to follow and digest. Good Course
3
Member's Profile
didnt deal with a lot of the intricacies of 409A; only valuation for stock options
3
Anonymous Author
Good overview. It would have helped if an Excel model is provided.
5
Member's Profile
Very informative introductory course.

Prerequisites

Course Complexity: Intermediate

No advanced preparation or prerequisites are required for this course.

Education Provider Information

Company:
Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact:
For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Syllabus
INTRODUCTION AND OVERVIEW
  8:56Introduction to 409A Valuations
409A Valuations
  9:48GAAP
  4:34Valuation
  8:55Income Approach
  6:25How is Equity Value Determined?
  12:10Option Pricing Method
  10:15Wrapping Up and Going Beyond
CONCLUSION
  5:50Conclusion
CONTINUOUS PLAY
  1:06:53409A Valuations
SUPPORTING MATERIALS
  PDFSlides: 409A Valuations
  PDF409A Valuations Glossary/Index
REVIEW AND TEST
  quizREVIEW QUESTIONS
 examFINAL EXAM