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Business Valuation; 409a

EAC was awarded a Business Valuation contract for the purpose of 409A deferred compensation by a multinational IT company as an update to our previous valuation report. We worked closely with the company’s Treasurer and CFO again to provide an accurate conclusion of value for this company generating $650MM in sales annually. EAC’s in-depth financial modeling of this company and public guideline analysis provided a strong report.

‣ Industry: Information Technology
‣ Standard of Value: Fair Market Value

What is IRC Section 409A?

Section 409A applies to compensation that workers earn in one year, but that is paid in a future year. This is referred to as nonqualified deferred compensation. This is different from deferred compensation in the form of elective deferrals to qualified plans (such as a 401(k) plan) or to a 403(b) or 457(b) plan.

Read more about 409a from IRS.gov