Expert Valuation Reports Built For Audit, Tax, And Investor Review.
Independent, customized valuation support for IRC 409A, ASC 718, ASC 820, ASC 815, complex securities, fund reporting, and transaction-related requirements.
Template-Based Valuations Can Miss What Complexity Demands.
In today’s market, valuation reports are often being produced quickly and cheaply through AI-assisted tools and standardized templates. For simple companies, that may appear efficient. But as cap tables, financing terms, investor rights, warrants, SAFEs, convertibles, preferred stock, or embedded features become more complex, template-driven valuations can become risky.
A valuation is not just a number. It depends on the right assumptions, the right methodology, and the ability to understand how each variable affects the final conclusion.
BSMART provides independent, customized, and audit-defensible valuation support for companies, funds, and finance teams that need reports built around their actual structure, instruments, reporting purpose, and compliance requirements.
Customized Valuation Support For All Kinds of Needs
01
IRC 409A Valuations
BSMART provides independent fair market value valuations of common stock to support IRC 409A requirements before issuing stock options or equity-linked compensation.
These valuations help companies set appropriate strike prices, document fair market value, and maintain stronger support for tax, investor, and audit-related review.
- What's Included
- Review of historical financial statements and management projections
- Equity allocation using OPM, PWERM, hybrid, or other suitable methods
- Review of cap tables, recent financing rounds, transaction documents, SAFEs, convertible instruments, and preferred stock terms
- Written valuation report documenting the methodology, assumptions, valuation date, and conclusion
- Analysis of the company’s business model, stage, industry, and risk profile
- Selection of appropriate income, market, or asset-based valuation approaches
- Determination of the fair market value of common stock
- Support for valuation-related questions during board, investor, tax, or audit review
- 409A Safe Harbor Support
- Independent appraisal
- Relevant valuation experience
- Written valuation report
- Good-faith analysis and documentation
- Qualified valuation professional
- Reasonable valuation methodology
- Current valuation date
- Company-specific facts and circumstances
- Why It Matters
02
ASC 718 Stock-Based Compensation Valuations
ASC 718 is an accounting standard that requires companies to measure and report compensation cost for stock-based awards. BSMART provides valuation support for options, restricted stock, RSUs, performance awards, and other equity-based compensation arrangements.
These valuations help finance teams support expense recognition, financial statement reporting, and audit documentation.
- What's Included
- Review of award terms, grant details, vesting conditions, and plan documents
- Black-Scholes, Monte Carlo, binomial lattice, or other methods depending on award complexity
- Documentation of methodology, assumptions, and valuation conclusions
- Valuation of stock options and equity-based awards using appropriate models
- Support for assumptions such as volatility, expected term, risk-free rate, dividend yield, and forfeitures
- Assistance with audit-related questions, schedules, and supporting documentation
- Why It Matters
Note *IRC 409A and ASC 718 are separate requirements. IRC 409A is a tax requirement related to determining fair market value, while ASC 718 is an accounting standard related to the valuation and reporting of stock-based compensation awards.
ASC 820 Fair Value Measurements
Under ASC 820, fair value measurements are required for certain assets and liabilities reported at fair value in financial statements. This is especially relevant for funds, investment entities, companies with illiquid assets, and businesses holding complex financial instruments.
BSMART provides fair value measurement support designed to improve reporting accuracy, documentation quality, and audit readiness.
- Services Include
- Independent valuation of private investments, PE/VC portfolios, and institutional assets
- Valuation of illiquid and Level 3 assets where observable inputs are limited
- Market data analysis and documented fair value hierarchy considerations
- Valuation support for contingent consideration, impairment testing, and complex financial assets
- Portfolio and fund fair value reporting for quarterly or annual financial statements
- Clear reporting of assumptions, methods, and valuation conclusions
- Why It Matters
ASC 815 Derivatives & Complex Securities Valuation
BSMART evaluates complex financial instruments that require careful modeling, judgment, and documentation. This is especially important for high-growth companies, venture-backed businesses, funds, and companies with multi-class capital structures.
- What's Included
- Deliverables Include
- Valuation models using Black-Scholes, binomial lattice, Monte Carlo, or custom approaches
- Scenario analysis and sensitivity testing
- Assessment of instrument terms, rights, preferences, and conversion features
- Valuation reports prepared for financial reporting and audit-related documentation needs
- Documentation of key assumptions and methodology
- Why It Matters
Strategic And Transaction Valuation Support
- Services Include
- ESOP and employee share plan valuation support
- Fairness opinion support
- Shareholder and ownership restructuring valuations
- Strategic valuation analysis for boards, founders, and finance teams
- M&A valuation and transaction support
- Litigation and dispute valuation support
- Transaction-readiness valuation support
A Clear Process From Data To Defensible Report
Every engagement begins with a detailed discovery phase. We understand your business model, capital structure, transaction history, reporting requirement, audit expectations, and strategic goals.
Based on this, we build a valuation approach that aligns with the applicable tax, accounting, or financial reporting requirement. Each report is prepared with transparent assumptions, documented methods, supporting analysis, and clear conclusions designed to withstand external review.
Understand The Requirement
We identify the purpose of the valuation, applicable standard, timeline, instruments involved, and documentation expectations.
Review The Data
We analyze financial statements, projections, cap tables, transaction documents, award agreements, financing terms, and relevant market inputs.
Select The Right Methodology
We determine the valuation approach based on the company’s stage, capital structure, instrument complexity, and reporting requirement.
Build The Valuation
We apply appropriate models, assumptions, discounts, allocation methods, and fair value measurement techniques.
Deliver The Report
You receive an independent valuation report with clear methodology, documented assumptions, and supporting analysis.
Assist During Review
We help with valuation-related questions, documentation requests, PBC schedules, and clarifications during annual audits or financial statement reviews.
Get A Valuation Report Built Around Your Business, Not A Template.
Whether you need a 409A valuation, ASC 718 award valuation, ASC 820 fair value measurement, ASC 815 complex security valuation, or transaction-related support, BSMART helps you move forward with clarity and confidence.