409A Valuation Services
Defensible 409A Valuations for Startups with a U.S. or Delaware Parent
A 409A valuation determines the fair market value of a private company’s common stock so that stock options can be granted at a compliant exercise price under Section 409A of the U.S. Internal Revenue Code. Options priced below fair market value expose the option-holder to accelerated income inclusion, an additional 20% U.S. federal tax and premium interest — which is why the valuation must be prepared under one of the recognised IRS safe-harbour methods and documented well enough to withstand scrutiny.
CA Murli Chandak — Fellow Chartered Accountant and IBBI-Registered Valuer (Securities or Financial Assets, IBBI/RV/07/2021/14408, verifiable on the IBBI Registered Valuers directory) — prepares 409A valuations with particular depth in India–U.S. structures: Indian-founded startups that have moved to a Delaware or other U.S. parent and grant options over the parent’s common stock to employees in India or elsewhere.
The service equally covers U.S.-incorporated companies preparing their first option grants, the twelve-month refresh while grants continue, and revaluations after material events such as a priced financing round. Every engagement covers the fully diluted capitalisation table — options, warrants, SAFEs and convertible instruments — enterprise and equity valuation through income, market and asset approaches, allocation of value to common stock where preferred classes exist, a reasoned discount for lack of marketability, and safe-harbour documentation of the valuation date, information relied upon, methodology and key assumptions. You receive a signed report stating the fair market value per share of common stock, positioned for board approval of option grants, with coordination with your U.S. tax counsel or CPA wherever U.S. tax-specific sign-off is required.
Cross-border groups rarely need only one valuation: the Indian operating company may need FEMA pricing, a Rule 57 NAV working or a Companies Act valuation, while the U.S. parent needs the 409A report. Because the practice already handles company valuation and ESOP advisory work under Indian law — with 300+ completed valuations across 7+ countries — both sides of the structure can be commissioned within one coordinated engagement. For the legal framework behind cross-border 409A work, read the detailed guide: Can an Indian Valuer Do a 409A Valuation?
This page describes the service in general terms and is not tax, legal or valuation advice on any specific transaction. Specialist U.S. tax counsel should be engaged for any actual Section 409A compliance determination.
What Our Clients Say
Ankit Rathod
CEO & Founder Relig Global
“Murli and his team are passionate people. Working round the clock to deliver work professionally before time.”
Apoorv Singh
Director at Legendary Eagle Security
“I am impressed with the timely follow up and speedy execution. I trust his team for all my compliance work.”
Asif Khan
Partner at Restowale
“I’ve entrusted all my finance, compliance and taxation needs to his team. I’ve always received satisfactory answers to all my queries.”
Ready to Set a Defensible ESOP Exercise Price? Schedule a Consultation with CA Murli Chandak Today.
Planning stock option grants under a U.S. or Delaware parent? Don’t leave the exercise price to guesswork. Schedule a consultation with CA Murli Chandak today to confirm the scope, the information required and the timeline for your 409A valuation.
Prefer email or WhatsApp? Share your structure — parent entity, capitalisation table and grant timeline — and CA Murli Chandak will respond with the scope, the information required and the timeline for your 409A valuation.
CA Murli Chandak – FCA | IBBI-Registered Valuer (Securities or Financial Assets) | IBBI/RV/07/2021/14408
Phone: +91 99985 39902
Email: murlichandak@murlichandak.com
LinkedIn: Connect with CA Murli Chandak
More on CA Murli Chandak’s background is available on the About page.