Request a proposal
Home / Services / Stock-based compensation — 409A / ASC 718
Valuation

Stock-based compensation — 409A / ASC 718

Common-stock valuations, complex capital-structure analysis, option pricing, and ASC 718 support for private and pre-IPO companies.

Deliverables

  • 409A common-stock valuations
  • OPM / PWERM / hybrid waterfalls
  • Black-Scholes and Monte Carlo models
  • Secondary transaction and down-round analyses
  • ASC 718 expense and audit support

Relevant frameworks

  • IRC §409A
  • ASC 718 stock compensation
  • Private-company equity valuation guidance
  • ASC 820 fair value measurement

When CFOs call us

  • Funding rounds & secondaries
  • Annual 409A refresh
  • Pre-IPO or down-round planning
  • Complex equity awards or rollover equity

Stock-based compensation — 409A / ASC 718

We prepare 409A common-stock valuations and ASC 718 support for companies with simple option plans, complex preferred-stock capital structures, secondary transactions, down rounds, tender offers, and pre-IPO reporting requirements.

Our analyses reconcile financing terms, board materials, secondary evidence, preferred rights, waterfall economics, volatility, discount for lack of marketability, and expected liquidity timing into a supportable fair value conclusion.

Equity compensation support

  • IRC 409A common-stock valuations and safe-harbor documentation
  • OPM, PWERM, hybrid, Black-Scholes, and Monte Carlo analyses
  • ASC 718 grant-date fair value, modification, and expense support
  • Secondary transaction, tender offer, down-round, and rollover equity analysis
  • Audit review support for private-company, sponsor-backed, and pre-IPO teams
Related client work

Representative case studies.

Valuation — ASC 805 / ASC 718

SimonMed Imaging

Diagnostic Imaging PE-Backed

R&M serves as SimonMed's outsourced technical accounting team across recurring technical accounting, valuation, lease accounting, and financial-reporting matters. Work spans ASC 805 purchase accounting for serial acquisitions, ASC 842 lease implementation across the imaging-center footprint, ASC 718 profit-interest-unit support, and ASC 470 debt analysis tied to refinancings. R&M prepares valuation analyses, supporting models, and written deliverables for management and external-auditor review.

View case
Valuation — ASC 718 / ASC 805

Confluent Medical Technologies

Medical Device Manufacturing (Nitinol, Catheters, Implants) Private

R&M has served as Confluent's technical-accounting partner since 2019, supporting ASC 480 debt-instrument analyses across multiple capital structure events, ASC 815 embedded-derivative identification and bifurcation, ASC 606 revenue recognition, ASC 842 lease accounting, and ongoing acquisition support. Valuation services engagement covering ASC 718 / ASC 805 for financial reporting under U.S. GAAP. R&M prepared valuation analyses, supporting models, and written deliverables for management and external-auditor review.

View case
Valuation — ASC 718 / ASC 805

Cadence Education

Early Childhood Education PE-Backed

R&M provides Cadence with focused technical-accounting support on equity compensation and debt instruments. R&M built and continues to maintain the profit-interest-unit expense database and authored the FY 2025 debt analysis memo under ASC 470-50. Valuation services engagement covering ASC 718 / ASC 805 for financial reporting under U.S. GAAP. R&M prepared valuation analyses, supporting models, and written deliverables for management and external-auditor review.

View case
Valuation — ASC 718 / ASC 805

EoS Fitness

Health & Fitness Clubs PE-Backed

Valuation services engagement covering ASC 718 / ASC 805 for financial reporting under U.S. GAAP. R&M prepared valuation analyses, supporting models, and written deliverables for management and external-auditor review.

View case
FAQ

Common questions.

What does Stock-based compensation — 409A / ASC 718 include?

The scope is tailored to the matter. Common deliverables include 409A common-stock valuations, OPM / PWERM / hybrid waterfalls, Black-Scholes and Monte Carlo models, secondary transaction and down-round analyses, and ASC 718 expense and audit support.

When should a finance team call Rivers & Moorehead for Stock-based compensation — 409A / ASC 718?

Teams typically reach out when they need support with funding rounds & secondaries, annual 409A refresh, Pre-IPO or down-round planning, and complex equity awards or rollover equity.

What standards or frameworks does this work consider?

Depending on the facts, the work may consider IRC §409A, ASC 718 stock compensation, Private-company equity valuation guidance, and ASC 820 fair value measurement.

Does Rivers & Moorehead provide audit or tax services?

No. Rivers & Moorehead is not a certified public accounting firm and does not provide attest, audit, review, compilation, or tax services. The firm works alongside management and external advisors on accounting advisory and valuation consulting matters.

Engage

Ready to scope stock-based compensation — 409A / ASC 718 support?

We respond within the business day. The first conversation is always with a partner — not a BD team.

Request a proposal