Privately held companies face additional challenges with their equity plans compared to their publicly traded peers. The valuation and accounting professionals at Infinite Equity have assisted hundreds of privately held companies with designing their equity plans, obtaining plan approval, and providing educational resources to participants.
Determine which equity plan design aligns most with objectives.
Guarantee success through the plan adoption process including support with share pool benchmarking and plan document drafting.
Ensure maximum success with a robust, mixed media communication strategy for your employees including print and digital mailers, “cafeteria” posters, townhall presentations, and educational videos.
Privately held companies that are working towards an IPO are subject to the fair value requirement of Accounting Standards Codification Topic 718: Compensation – Stock Compensation (“Topic 718”), without the historical data that are needed to develop many of the key assumptions. Additionally, companies with more than one class of stock outstanding need to develop the fair value estimates in a manner that is consistent with the AICPA’s practice aid: Valuation of Privately-Held-Company Equity Securities Issued as Compensation (the “AICPA Practice Aid”).