• QuickRead Top Story - Valuation/Appraisal

    Understanding the Delta

    March 4, 2026

    When 409A Valuations Differ from Funding Rounds In early‑stage and growth‑stage companies, it is common, and often surprising to founders, when the per‑share price established in an IRC §409A valuation does not match the price investors paid in a recent financing round. This difference can feel counterintuitive, especially when the company has just completed a successful raise and the preferred share price reflects strong investor interest. This article discusses why funding round and valuations differ. In early‑stage and growth‑stage companies, it is common, and often surprising to founders, when the per‑share price established in an IRC §409A valuation does not…

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    Consequences of Complex Capital Structures—A Coda or a Bridge?

    June 28, 2017

    In earlier blog posts we discussed the potentially pernicious effect of a decline in the value of pre-public companies on equity compensation granted to employees.  Sujan Rajbhandary, senior member of Mercer Capital’s Financial Reporting Valuation Group, explains that unlike preferred investors, employees also depend on their employers for current income. To read the full article in Mercer Capital’s Financial Reporting Blog, click: Consequences of Complex Capital Structures—A Coda or a Bridge? This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.

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    People Are Worried About Equity Compensation

    April 19, 2017

    The fading use of equity compensation by more mature companies likely reflects: i) relatively cash-rich treasuries; ii) greater interchangeability of personnel to fulfill work functions; and iii) workers’ risk-tolerances (or lack thereof).  Sujan Rajbhandary, vice president and senior member of Mercer Capital’s Financial Reporting Valuation Group, discusses the issue. To read the full article in Mercer Capital’s Financial Reporting Blog, click: People Are Worried About Equity Compensation. This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.

  • QuickPress - Valuation/Appraisal

    The IRS Equity Compensation Audit Guide

    November 18, 2015

    Obviously, every equity compensation plan is different and the particular tax treatment of a given security depends on the facts and circumstances of the arrangement.  Samantha L. Albert, senior financial analyst with Mercer Capital, examines equity-based compensation and the tools available when examining these arrangements. To read more about the results of this report in the Mercer Capital’s Financial Reporting Blog, click: The IRS Equity Compensation Audit Guide. This article is republished from Mercer Capital’s Financial Reporting Blog.  It is reprinted with permission.  To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.

  • QuickPress - Valuation/Appraisal

    Why Quality Matters in Valuation for Equity Compensation Grants

    April 15, 2015

    Privately held companies can expect the level of scrutiny over equity compensation-related valuation to increase with the size of the equity compensation grant. Getting the valuation process right the first time for equity compensation grant compliance is always the least expensive route says Sujan Rajbhandary, vice president, and senior member of Mercer Capital’s Financial Reporting Valuation Group. In this article, he discusses the impact of the Auditor Review, SEC Scrutiny, and IRS Review on the valuation process. [button color=”blue” link=”http://mercercapital.com/financialreportingblog/valuation-equity-compensation-grants/” target=”_blank” font=”arial” align=”left”]To learn more about the valuation for equity compensation, click here.[/button] This article is republished from Mercer Capital’s…