A 409A valuation is an independent appraisal of your company's common stock, required by the IRS before you issue stock options. Without a current, defensible 409A, every option you grant exposes your employees to a 20% federal penalty tax. Total Finance Resolver delivers 409A valuations built to hold up under audit, investor diligence, and IRS scrutiny — not just a signed PDF.
Why the report matters more than the price?
Startups can now get a 409A for under $500 from automated platforms. What that price doesn't cover: a methodology that survives scrutiny when your Series A investors, auditors, or the IRS actually look closely. A 409A is only as good as the judgment behind it. We build every valuation the way an institutional investor would expect it to be built — because eventually, someone will check.
What you get
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Independent, IRS safe-harbor-compliant valuation report
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Methodology aligned with DCF, comparable company, and backsolve approaches — whichever fits your stage
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Direct access to the professional who built your report, not a support ticket queue
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Fixed, transparent pricing — no hourly billing surprises
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Turnaround built around your option-grant timeline, not a generic queue
What Your 409A Valuation Engagement Includes
More than a Valuation Report
A 409A valuation requires more than a final fair market value figure. The analysis needs to reflect the company's financial position, equity structure and the rights attached to its securities. Every completed TFR engagement includes the following deliverables.
01 | Comprehensive Valuation Report
A documented report explaining the company, relevant financial and industry context, valuation methodology selection, material assumptions and valuation conclusion.
Depending on the company's circumstances and the selected methodology, the analysis may include discounted cash flow analysis, comparable-company analysis, recent financing evidence and backsolve analysis, alongside the appropriate allocation methodology.
03 | FMV & Strike Price Summary
A clear summary of the concluded fair market value per common share, the effective valuation date and the recommended option exercise price for the company's consideration and approval process.
Analysis led by experienced finance professionals
TFR's valuation work draws on professionals with ACVA, CPA and CFA qualifications and experience at investment banks and Big Four firms. Their role is to apply appropriate analytical judgment to the company's financial position, capital structure and valuation requirements.
02 | Cap Table & Waterfall Model
A mapped view of the company's equity structure, covering relevant common and preferred shares, option pools, convertible securities and other instruments within the agreed scope.
Where applicable, the waterfall analysis reflects the rights and economic preferences associated with different share classes, including liquidation preferences, seniority and participation rights.
04 | Audit Support*
Technical documentation supporting the valuation methodology, principal assumptions and material calculations.
The engagement includes support for questions from company auditors or counsel within the agreed scope.(on specific higher end engagements)
How the 409A Valuation Process Works
Step 1: Understand your company and equity structure
We review your company's stage, financing history, capitalization table, outstanding equity instruments and the purpose of the valuation to establish the appropriate engagement scope.
Step 2: Collect and review the required materials
You provide the financial information, management forecasts, capitalization details, financing documentation and other materials requested for the engagement.
Step 3: Perform the valuation analysis
Our team assesses the relevant financial and company-specific information, selects appropriate valuation methods and analyses the allocation of equity value across the relevant share classes and instruments.
Step 4: Prepare the report and supporting models
We document the valuation conclusion, methodology, material assumptions and supporting analysis, together with the cap table reconciliation, waterfall model and strike-price summary included in the engagement.
Step 5: Deliver the completed engagement
The standard turnaround is 10 business days after all requested materials have been received. The completed deliverables are provided in accordance with the agreed scope, with support for auditor or counsel questions as specified in the engagement.
Who we work with
Founder-led startups across California, Texas, New York, Washington, and Illinois — from first option grant through Series A and beyond. Whether you're a Bay Area SaaS company issuing your first grants or a Series A fintech preparing for a board review, the same standard applies: a valuation you can defend, not just file away.
When you need this
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Before your first stock option grant
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After a priced funding round
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Annually, or after any material change to your cap table
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Before an acquisition offer or M&A conversation
FAQs
How much does a 409A valuation cost for a startup?
Most startups pay between $3,499 and $7,500, depending on cap table complexity and funding stage. Pricing is fixed and quoted upfront — no hourly billing.
How long does a 409A valuation take?
Turnaround is typically 10 business days depending on complexity, built around your option-grant timeline calculated from the day of materials received.
What happens if I don't get a 409A valuation?
Employees receiving options priced below fair market value face a 20% federal penalty tax on the spread, plus interest, under IRC Section 409A.
Is a cheap 409A valuation risky?
Not inherently — but the report is only as strong as the methodology and judgment behind it. What matters at audit or diligence is defensibility, not the price paid.
How often do I need a new 409A valuation?
Every 12 months, or immediately after a material event such as a new funding round, M&A discussion, or significant change in company performance.
What does a 409A valuation engagement include?
Every completed engagement includes a documented valuation report, cap table reconciliation and waterfall model, a common-stock fair market value and strike-price summary, and support for questions from company auditors or counsel within the agreed scope.
What information is needed for a 409A valuation?
Depending on your company's circumstances, we may request financial statements, management forecasts, your current capitalization table, financing documents and details of outstanding equity instruments.
What affects the cost of a 409A valuation?
Pricing depends on your company's stage, capitalization structure, share classes, equity instruments and analytical requirements. Standard engagements range from $3,499 to $7,500. Exceptionally straightforward pre-seed engagements may qualify for a $2,499 fee under special conditions.