Option Pricing and Restricted Stock

For emerging growth companies who are setting their stock option strike prices or valuing the options themselves, Empire provides independent valuation opinions backed by extensive experience. We have valued a wide range of high-growth, early-stage firms, including bio-tech and high-tech, software, new media, e-commerce, and telecommunications, among others. Empire also develops option-related valuations for more established businesses as they approach various liquidity events, including potential IPOs.

Restricted stock (Rule 144) and shares that are subject to lock-up or performance agreements frequently require valuations for gifting, financial reporting or matrimonial actions. There are many cases where lock-up restrictions may impact the value paid for an acquisition. Empire can help ensure that clients do not over-report the value of these securities, or the price paid for an acquisition, in either a financial or tax reporting environment.

With the new 409a and “cheap stock” review emphasis, the audit focus on this area is much greater than ever before.

Chuck Coyne

Managing Director