Section 409A

Challenge: 

A media advertising sales company was being acquired by a private investment firm and during the buyer due diligence process the buyer’s audit firm would not sign-off on the company’s historical common stock valuations performed in-house for Section 409A/Cheap Stock purposes. We were asked by the attorneys representing the seller to provide multiple common stock valuations on a retrospective basis that would withstand a Big 4 audit review under tight deal closing deadlines.  

Solution: 

Through an efficient and diligent analysis of the company’s financial performance and outlook over a four-year period, VRC provided a number of retrospective common stock valuations for the seller that passed muster with the buyer’s due diligence process and Big 4 audit review. Our valuation analyses helped prevent any delay in the closing of the deal.