Client:

Empower Pharmacy

Title:

409A Valuation and Compliant Incentive Plan for a Major Late-Stage Pharmacy

Roles:
Type of need:

Independent valuation, 409A valuation report, Financial consulting, Executive comp advisory

The Challenge

Empower Pharmacy needed an appraisal of the fair market value (FMV) of its privately-held units by an independent third party. This valuation is a legal obligation under the IRS’s 409A rule for all private companies that want to compensate employees with equity or options. Most startups need a 409A valuation to stay in compliance, as well as late-stage companies that are hiring key executives.

The first 90 days

The Solution

We worked as an independent third-party appraiser and analyzed all aspects of the client’s current and future business, as well as the broader market dynamics and competitive landscape to arrive at the fair market value of the company’s equity and prepare a 409A valuation report. The valuation was based on the asset approach, market approach, and income approach.