AICPA Guidance for Valuing Complex Equity Capital Structures

Rob Barnett discusses the AICPA’s updated guidance to its original Practice Aid regarding the valuation of equity securities of privately-held companies.

Valuation Integral to Sec. 409A Requirements

The valuation of a development-stage company’s common stock is best estimated using the methods in the Practice Aid.

Current Practice Issues Pertaining to Sec. 409A

In the original Practice Aid, there was no mention of the back-solve approach. Since then the technique has come into widespread use.