downloadFree Practitioner Guide · 6 pages

12 Things to Verify Before You Quote a 409A Valuation

A pre-engagement checklist for CPAs, valuation advisors, and brokers. Surface independence conflicts, methodology constraints, and material events before scope is agreed.

checkCatch independence conflicts before scope is agreed, not after the engagement letter is signed.
checkSize the fee to the methodology the capital structure actually requires.
checkSurface material events that would force a reissuance under the §409A safe harbor.

Sources citedIRSAICPAFASBSEC

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What’s inside

Four sections. Twelve items. One pre-quote call.

Designed to fit a fifteen-minute conversation with the client’s finance lead or counsel before you sign the engagement letter.

Section 01 · 3 items

Independence & engagement eligibility

AICPA Code, SEC Reg S-X, and SSVS No. 1 — the three independence checks every quote must clear.

Section 02 · 3 items

Equity structure & recent events

Capital structure complexity, priced rounds, SAFEs and notes — the inputs that drive method choice.

Section 03 · 3 items

Financial posture & operating reality

Audited statements, forecast quality, and material adverse changes since the prior valuation.

Section 04 · 3 items

Transaction activity & market context

Secondaries, M&A discussions, and prior 409A reports — the observable evidence that constrains your conclusion.

verifiedBy the Zimbs Valetex Editorial Team

Every checklist item is grounded in publicly available regulation, professional standards, or AICPA guidance. The document includes a footnoted source list so any reader can verify the underlying citation. The same editorial standard governs our blog, including a strict no-fabrication policy on regulatory references.

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Frequently asked questions

Who is this checklist designed for?

CPAs, valuation advisors, and brokers who are about to accept a 409A engagement for a private company client. The checklist assumes domain familiarity with §409A, ASC 718, and standard valuation methods. It is a pre-quote framework, not an introductory primer.

What regulations and standards are cited?

IRC §409A and Treas. Reg. §1.409A-1, AICPA Statement on Standards for Valuation Services No. 1, the AICPA Code of Professional Conduct (including ET §1.295 on non-attest services), SEC Regulation S-X Rule 2-01, and FASB ASC 718, 820, and 205-40. Every claim is backed by a publicly available source listed at the end of the document.

How is the PDF delivered?

You will see the download link immediately after submitting your email, and a copy is sent to your inbox. The PDF is six pages and approximately 400 KB.

Use it on your next pre-quote call.

Six pages. Twelve verifiable items. No fluff.