Technology Blog

Armanino’s Technology Blog informs technology and software CFOs and executives of the latest industry trends, rule changes and best practices. Our professionals bring you their insights and advice from an accounting and organization perspective to help your company reach its goals.

Tuesday, March 31, 2015

Etsy’s Roadshow: A Reminder for Pre-IPO CFOs

While the SEC is reviewing Etsy’s Form S-1 submission (filed on March 4 of this year), the management team is preparing to embark on a roadshow tomorrow, where company executives and bankers will provide financial analysts and investors with the opportunity to question management—particularly the CEO and CFO—on the upcoming NASDAQ launch of ticker symbol …

Tuesday, March 11, 2014

The Importance of 409A and Equity Awards for Growing Companies

For growing companies, options and other forms of equity awards are an important way of incentivizing top talent when cash is in short supply or the market demands ownership opportunity. According to a recent Armanino webinar titled The Importance of 409A and Equity Awards for Growing Companies, Dirk Van Dyke, Managing Director of Valuation Services, …

Friday, August 16, 2013

Effective 409A Valuations Essential for Young Companies

For start-ups or young, rapidly growing companies, IRS rules on the valuation of deferred compensation on bonuses, severance packages and stock options demand particular attention. Such payments to company officials, employees and service providers are covered under Section 409A of the tax code. Experience shows us that the IRS and auditors tend to look at …

Tuesday, May 28, 2013

Going IPO? Be Mindful of Potential 409A Pitfalls

Managing your company’s obligations under Section 409A of the IRS Code (rules on deferred compensation for such payments as bonuses, severance packages and stock options) requires an extra measure of vigilance when you are reaching a valuation for your company. Here I discuss some of the key areas subject to critiques by auditors and the …

Monday, March 11, 2013

Not All Valuations Experts Are Created Equal

Private technology companies are required by the IRS (Code Section 409A) to grant their common stock options at a strike price that is not less than the fair market value of common stock. The IR Code recommends that a valuation of common stock be done not less than annually, if not more often. It’s very …