Section 409A Valuations

Mirus helps companies fulfill the requirements of Section 409A of the Internal Revenue Code regarding the valuation of stock options and other forms of deferred compensation. A rigorous valuation mitigates the risk that employees will be hit with stiff tax penalties for receiving undervalued stock options. Equally important, investors and potential buyers increasingly want assurances that companies are 409A compliant. Mirus' market knowledge and experience in valuing early stage businesses and emerging technologies makes us the perfect independent appraiser to assist you in satisfying these new IRS regulations.


Strategic Consulting

Mirus provides strategic counsel to business owners and corporate boards seeking ways to increase shareholder value through improved decision-making. The Mirus Strategic Audit goes beyond financial performance to evaluate potential growth scenarios. We analyze your market opportunity, competitive position and opportunities for expansion and what, if any, transactions will advance your business plan and valuation goals. We also connect you with appropriate financing sources and other resources to help make your business growth and expansion strategies a reality.

Mirus is a leading independent financial advisor to business owners and corporate boards, with 20 years of experience in reviewing strategic alternatives, sizing markets and business opportunities, evaluating transactions, and valuing strategic assets. Strategic Audits can be completed in as little as 30 days when the mandate is to offer a recommendation on a specific opportunity, but often involve a broader overview where Mirus may make recommendations on organizational structure, sales and marketing strategy, balance sheet issues, and strategic alternatives for the business.


Financial Modeling

Mirus builds financial and operational models that provide insight for decision makers. Our models focus on capturing critical economic relationships and are built from the bottom up to address dynamics specific to your company and your industry. Models can range from targeted analyses driven by a select set of critical value drivers to highly sophisticated models with multi-dimensional scenario analysis and granular financial outputs.


Valuation Analysis

By combining sophisticated financial analysis with over 20 years of experience in merger and acquisition advisory, Mirus provides a unique, third-party perspective to our valuations of businesses and underlying securities.

What makes 409A valuations different from other valuations? Most valuations begin and end with an estimate of the value of the total enterprise and its equity; however a 409A valuation focuses on valuing the common stock of the company. As a consequence a 409A valuation needs to incorporate the financial features of a company's capital structure to allocate the value of the equity among different classes of shareholders.

Noncompliance with IRC 409A can lead to acceleration of taxable income, penalty taxes, company withholding tax issues and potential exposure for board members. Additionally, non-compliance could impact the marketability of a business to investors and/or acquirers.

We employ several methodologies in every valuation analysis, providing you with all the internal and external data needed for sound decision-making. We document our valuations in a comprehensive report, appropriate to the scope of the assignment.


Fairness Opinions

Transactions involving acquisitions, divestitures, and reorganizations often require expert opinions, typically rendered by investment bankers, as to the fairness of the transaction's financial terms. Mirus provides fairness opinions to boards of directors, special committees, and other interested parties. In our due diligence, we review the same information required in performing a valuation analysis. In addition, we analyze the valuation and structure of the transaction; the form and timing of consideration; market factors; the financial, accounting, and tax implications; and many other factors, depending upon the situation. When the determination of value is part of a legal, tax, or regulatory proceeding, Mirus provides experienced expert witnesses.