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IRS 409A · ASC 805 · ASC 350 · ESOP · FASB

Business Valuation in the United States — Independent, CFA-Led, IRS 409A & ASC 805 Compliant

Corvian Advisory provides CFA-led independent business valuation in the USA — for M&A transactions, IRS 409A stock option pricing, ASC 805 purchase price allocation, ASC 350 goodwill impairment testing, ESOP valuations, shareholder disputes, and cross-border US-GCC/UAE transactions. Fixed fee from USD 2,500. Reports accepted by the IRS, Big 4 auditors, US courts, and institutional investors.

Direct Answer — How Much Does a Business Valuation Cost in the USA?
SME / 409A / ESOP valuation: USD 2,500–8,000. Mid-market M&A valuation: USD 8,000–25,000. Complex ASC 805 PPA or litigation: USD 25,000+. Fixed fee, agreed before work begins.
CFA Charterholder Chartered Accountant IVS Compliant IRS 409A Accepted ASC 805 / FASB ESOP / ERISA Big 4 Trained Fixed Fee
Get a Fixed-Fee Quote M&A Advisory — USA
USD 2,500
From
2–4 Wks
Delivery
IVS/FASB
Standard
15+ Yrs
Experience
IVS
Standard
IRS 409A
Safe Harbor
ASC 805
FASB PPA
ASC 350
Goodwill Test
ESOP/ERISA
Annual Appraisal
Big 4
Auditor Accepted
US Courts
Expert Opinion
RR 59-60
IRS Standard
Use Cases

When Do You Need a Business Valuation in the USA?

From 409A stock option valuations to ASC 805 purchase price allocations — these are the most common reasons US business owners and executives engage Corvian Advisory.

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IRS 409A — Stock Option Valuation
Section 409A requires private companies to establish fair market value (FMV) of common stock before granting stock options. An independent 409A valuation from a qualified appraiser provides a 12-month IRS safe harbor. Without it, employees face immediate income tax on option value plus 20% penalty tax.
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Selling Your Business in the USA
A pre-sale independent valuation sets a defensible asking price based on normalised EBITDA and actual US transaction comparables. Business owners who go to market without one almost always leave money on the table — or accept a letter of intent before understanding true value.
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ASC 805 — Purchase Price Allocation
FASB ASC 805 requires acquirers using US GAAP to allocate purchase price to identifiable assets, liabilities, and goodwill — including off-balance-sheet intangibles. Big 4 auditors require a third-party PPA report. Our ASC 805 PPA reports are accepted by Big 4 and major audit firms.
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ASC 350 — Goodwill Impairment Testing
FASB ASC 350 requires annual goodwill impairment testing at the reporting unit level. If fair value falls below carrying value, the excess is recorded as an impairment loss. We provide ASC 350 reporting unit valuations and Step 1/Step 2 analysis accepted by Big 4 audit teams.
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ESOP Valuation — ERISA Annual Appraisal
ERISA requires independent annual appraisals of ESOP assets. The trustee must ensure the plan pays no more than fair market value for employer stock. Our ERISA-standard ESOP valuations meet Department of Labor requirements and provide trustees with the defensible FMV they need.
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Shareholder Dispute — US Courts & Arbitration
Shareholder disputes in the US require independent expert opinions that can withstand cross-examination in US courts or AAA/JAMS arbitration. Corvian Advisory provides court-ready valuation reports built to withstand scrutiny from opposing counsel and judicial review.
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Management Buyout — PE & Debt Financing
MBO transactions require independent valuations for lender due diligence, equity documentation, and fairness to selling shareholders. Our MBO-context valuations are used by PE sponsors, private debt lenders, and management teams to support deal financing and close.
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Cross-Border US-GCC/UAE Transactions
Corvian Advisory specialises in cross-border US-GCC/UAE valuations — for US companies with UAE/GCC investors or subsidiaries, and GCC-based acquirers of US businesses. Dual-jurisdiction reports satisfying both US GAAP/IRS and UAE regulatory standards.
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How Much Is My Business Worth in the USA?
The only reliable way to answer this is an independent valuation using actual US transaction comparables, normalised EBITDA, and sector-specific multiple benchmarks. Corvian Advisory provides this from USD 2,500, delivered in 2–4 weeks.
US Regulatory Framework

US Business Valuation Standards — What Every Business Owner Must Know

The US has a well-established business valuation regulatory framework. Here are the key standards that determine when and how your business must be valued.

Internal Revenue Code

Section 409A — Equity Compensation

IRC Section 409A requires fair market value of private company common stock to be established by an independent qualified appraiser before granting stock options. A 409A safe harbor valuation protects both the company and option holders from IRS challenge for 12 months.

FASB / US GAAP

ASC 805 — Business Combinations

FASB ASC 805 requires purchase price allocation for business combinations under US GAAP. All identifiable intangible assets must be separately valued and recorded. Residual becomes goodwill. Big 4 auditors require a qualified third-party PPA for any material acquisition.

FASB / US GAAP

ASC 350 — Goodwill Impairment

ASC 350 requires annual goodwill impairment testing and interim testing when triggering events occur. Impairment is recognised when a reporting unit's carrying value exceeds its fair value. Annual testing involves estimating the fair value of each reporting unit.

ERISA / DOL

ESOP Annual Appraisal

ERISA requires ESOPs to obtain an annual independent appraisal from a qualified independent appraiser. The trustee has a fiduciary duty to ensure the plan pays no more than adequate consideration. Department of Labor regulations specify independence and qualification requirements.

IRS Revenue Ruling

Revenue Ruling 59-60

RR 59-60 is the foundational IRS guidance for valuing closely held businesses — establishing eight factors the IRS considers in valuation disputes. While not binding law, it is referenced in virtually all IRS-accepted business valuations and sets the standard of care expected.

FASB / US GAAP

ASC 718 — Stock Compensation

ASC 718 requires fair-value measurement of stock-based compensation at the grant date. For private companies, this requires a 409A FMV for the underlying stock plus an option pricing model (Black-Scholes, lattice). Annual grants and new option pools trigger ASC 718 analysis.

Methodology

Valuation Methods Used for US Businesses

Method 01
Discounted Cash Flow (DCF)
DCF projects free cash flows and discounts to present value using a risk-adjusted WACC. For US businesses, we calibrate WACC using industry-standard cost of capital studies, sector betas, and size premiums. Scenario analysis tests value sensitivity to key assumptions — essential for M&A negotiations and 409A documentation.
Best for: Growth businesses, M&A, 409A, ASC 805 DCF supporting analysis
Method 02
Market Multiples (Guideline Companies)
We benchmark US businesses against public guideline company multiples (Guideline Public Company Method) and private transaction comparables (Guideline Transaction Method). For SaaS and tech, we use ARR/NRR multiples benchmarked against recent private and public US transaction data.
Best for: M&A transactions, 409A, ASC 350 fair value, litigation
Method 03
Net Asset Value (NAV)
NAV values the business based on fair value of underlying assets minus liabilities. Used for holding companies, asset-heavy businesses, and as a floor in 409A and litigation contexts. For financial services, book value multiples provide the primary anchor.
Best for: Holding companies, real estate, financial services, asset-heavy firms
Method 04
ASC 805 Intangible Valuation
For ASC 805 PPA, we identify and value intangibles using Multi-Period Excess Earnings (customer relationships), Relief from Royalty (technology, brands), and With-and-Without (non-competes). We prepare deferred tax calculations and deliver Big 4 audit-ready ASC 805 reports.
Best for: Post-acquisition PPA, ASC 350 annual impairment testing
Pricing

Business Valuation Fees in the USA — Fixed, Transparent, Agreed Upfront

SME / 409A / ESOP
USD 2,500–8,000
409A stock option FMV, ESOP annual appraisal, partner buyout, or benchmark valuation.
✓IRS 409A safe harbor report
✓2–3 valuation methods
✓US market comparables
✓Delivered in 2–3 weeks
Most Common
Mid-Market M&A
USD 8,000–25,000
M&A transactions, management buyouts, shareholder disputes, cross-border US-GCC.
✓Full M&A-grade valuation report
✓EBITDA normalisation
✓US public & private comparables
✓Scenario & sensitivity analysis
✓Delivered in 3–4 weeks
ASC 805 / Complex
USD 25,000+
ASC 805 PPA, ASC 350 impairment, litigation expert, multi-entity groups.
✓Full PPA intangible identification
✓Big 4 audit-ready deliverable
✓ASC 350 reporting unit analysis
✓Litigation-grade expert report
Price promise: Fixed fee agreed before any work begins. No hourly billing. No surprises. All US valuations can be invoiced in USD.
Our Process

How a Business Valuation in the USA Works

01
Consultation
No-obligation call. Understand purpose (409A, ASC 805, M&A, ESOP). Fixed fee agreed.
02
Information
3–5 years of US GAAP financials and documentation via secure data room.
03
Analysis
Principal-led normalisation, US market comparables, method selection per IRS/FASB requirements.
04
Report
IVS/FASB compliant report in 2–4 weeks. IRS safe harbor. Big 4 and court accepted.
Client Reviews

What US Clients Say About Corvian Advisory

★★★★★
"We needed both a 409A valuation for our option pool and a cross-border valuation for our UAE entity. Corvian handled both in one engagement — thorough, IRS-compliant, and delivered in under three weeks."
Founder, US Technology Company
SaaS, San Francisco
★★★★★
"Corvian produced a pre-acquisition valuation for a US mid-market healthcare business we were evaluating. The normalised EBITDA analysis and comparable benchmarking were exactly what our investment committee needed."
Investment Director, US PE Fund
Private Equity, New York
★★★★★
"We needed an ASC 805 PPA for our acquisition of a Texas engineering firm. Corvian's intangible asset identification and allocation was accepted by our Big 4 auditor without any revision requests."
CEO, US Manufacturing Group
Industrial Engineering, Houston
FAQ

Business Valuation USA — Frequently Asked Questions

How much does a business valuation cost in the USA?+
Business valuation fees in the USA range from USD 2,500 to USD 25,000+. SME and 409A/ESOP valuations: USD 2,500–8,000. Mid-market M&A valuations: USD 8,000–25,000. Complex ASC 805 PPA, ASC 350 impairment, or litigation: USD 25,000+. All fees are fixed-scope and agreed before any work begins — no hourly billing.
What is a 409A valuation and why is it required?+
Section 409A of the Internal Revenue Code requires private companies to establish fair market value (FMV) of common stock before granting stock options. Without a qualified independent 409A valuation, employees and executives receiving options face immediate income tax on the spread plus a 20% additional penalty tax. A 409A from a qualified independent appraiser provides a 12-month IRS safe harbor. New option grants or material events (new funding round, acquisition) require a fresh 409A.
What is ASC 805 purchase price allocation and when is it required?+
FASB ASC 805 (Business Combinations) requires acquirers under US GAAP to allocate purchase price to: identifiable tangible assets, identifiable intangible assets (customer relationships, developed technology, trade names, non-competes), assumed liabilities, and residual goodwill. Big 4 auditors require a qualified third-party ASC 805 PPA report for any material acquisition. Our reports are accepted by Big 4 and major audit firms.
What is an ESOP valuation and why does ERISA require it?+
ERISA (Employee Retirement Income Security Act) requires ESOPs to obtain an annual independent appraisal from a qualified independent appraiser. The ESOP trustee has a fiduciary duty to ensure the plan pays no more than "adequate consideration" (fair market value) for employer stock. Department of Labor regulations specify that the appraiser must be independent and qualified. Our ERISA-standard ESOP valuations meet DOL requirements and provide trustees with legally defensible FMV determinations.
What are typical business valuation multiples in the USA?+
US mid-market transaction multiples by sector: Technology/SaaS 12–25× EBITDA (or 6–20× ARR for pre-profit); Healthcare 10–20× EBITDA; Financial Services/Fintech 8–18× EBITDA; Business Services 7–14× EBITDA; Manufacturing 5–10× EBITDA; Logistics (tech-enabled) 6–12× EBITDA; E-commerce/DTC 4–10× EBITDA; Professional Services 5–10× EBITDA. Actual multiples depend on earnings quality, growth rate, customer concentration, and deal structure.
What is Revenue Ruling 59-60 and why does it matter?+
Revenue Ruling 59-60 is the foundational IRS framework for valuing closely held businesses. It establishes eight factors the IRS considers when evaluating business valuations: the nature and history of the business; economic outlook; book value; earning capacity; dividend capacity; goodwill; recent stock sales; and market comparables. While issued in 1959, it remains the gold standard for IRS-accepted business valuations and is referenced in virtually all 409A and estate tax valuations.
Can you provide cross-border US-UAE/GCC valuations?+
Yes — this is a core Corvian Advisory strength. We provide cross-border US-UAE/GCC valuations for US companies with UAE/GCC subsidiaries or investors, GCC entities acquiring US businesses, and dual-jurisdiction reporting requirements. Our dual-standard reports satisfy US GAAP/IRS requirements on the US side and UAE/GCC regulatory requirements on the other side, in a single engagement.
What is ASC 350 goodwill impairment testing?+
FASB ASC 350 requires annual goodwill impairment testing at the reporting unit level. If a reporting unit's fair value falls below its carrying value (including goodwill), the difference is recognised as an impairment loss. A qualitative assessment (Step 0) may be performed first; if impairment is more likely than not, a quantitative test is required. We provide full ASC 350 reporting unit valuations and supporting analysis accepted by Big 4 audit teams and audit committees.
How much is my business worth in the USA?+
The value of your US business depends on sector, normalised EBITDA, growth rate, customer concentration, and deal structure. Most US mid-market businesses trade at 5–20× EBITDA depending on sector. A SaaS business with 120% NRR attracts 18–25× EBITDA; an owner-dependent service business attracts 4–7× EBITDA. The only reliable way to know is an independent valuation using actual US transaction comparables. Corvian Advisory provides this from USD 2,500 with delivery in 2–4 weeks.
What is the difference between FMV and strategic value in US M&A?+
Fair Market Value (FMV) is the price a hypothetical willing buyer would pay a willing seller, both reasonably informed, without compulsion — the standard for 409A, ESOP, estate tax, and most litigation purposes. Strategic value (or investment value) includes synergies a specific buyer would capture — typically higher than FMV. In M&A, the gap between FMV and strategic value represents the negotiating room and synergy premium above stand-alone value.
What is ASC 718 and when does it require a valuation?+
ASC 718 (Compensation — Stock Compensation) requires fair-value measurement of equity-based compensation awards, including stock options, restricted stock, and warrants. For private companies, this typically requires a 409A valuation for the underlying common stock and a Black-Scholes or binomial model for option fair value, expensed over the vesting period.
Market Multiples

US Mid-Market Business Valuation Multiples by Sector

US mid-market transaction benchmarks — updated 2026. Actual deal multiples depend on earnings quality, growth, and deal structure.

SectorEV/EBITDA RangeUS Market Notes
Technology / SaaS (B2B)12–25×ARR and NRR premium; 6–20× ARR for pre-profit; Rule of 40 quality metric
Healthcare10–20×Value-based care models command premium; specialty and home health attractive
Financial Services / Fintech8–18×Regulated entity premium; fintech at upper range vs. traditional banking
Business Services7–14×Recurring contract quality critical; customer concentration discounts applied
Manufacturing5–10×IP, automation, and defence/aerospace exposure attracts premium
Logistics (tech-enabled)6–12×E-commerce growth tailwind; last-mile and cold chain at premium
E-commerce / DTC4–10×Brand equity, AOV, and customer LTV driven; gross margin quality critical
Professional Services5–10×Key-man risk and client concentration discounted; recurring retainer premium
F&B / Restaurants4–8×Franchise models at premium; operator-dependent units at discount
Industrial / Construction4–8×Backlog quality and government contract exposure key value drivers
Competitive Comparison

Corvian Advisory vs Other Valuation Firms for US Mandates

FirmCFA-LedFixed FeeUS Regulatory ExpertiseDeliveryPricing
Corvian Advisory
Boutique · CFA + CA · Big 4 trained
 Yes — Principal Yes 409A · ASC 805 · ESOP · Cross-Border 2–4 weeks USD 2,500–25,000
Global Top-Tier Advisory Firms
Big 4 & international networks – US
 Varies Hourly Full US coverage 6–12 weeks USD 25,000–150,000+
Specialist Valuation Boutiques (US)
Senior-led, single-discipline firms
 Sometimes Hourly US-specialist 4–8 weeks USD 15,000–75,000+
Online 409A Platforms (Carta, Pulley)
Automated 409A tools
 No — Algorithmic Yes 409A only 1–2 weeks USD 1,500–3,000
Related Service

Need M&A Advisory for US Transactions? We Do That Too.

Business valuation is one side of a transaction. If you are buying or selling a business in the USA — or pursuing a cross-border US-GCC/UAE deal — Corvian Advisory also provides full M&A advisory. No retainer fee. 2–5% success-based engagement.

Explore M&A Advisory — USA
New York
Financial Hub
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Tech & Media
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Energy & Industrial
Miami
Latin America Gateway
US-Wide
All States

Ready to Know What Your Business Is Worth in the USA?

Get a Fixed-Fee Quote M&A Advisory — USA
IP & Intangible Asset Valuation USA

Valuing America's Intangible Economy —
AI, SaaS, Software & Intellectual Property

In the US market, intangible assets are not a footnote to enterprise value — they are enterprise value. The typical venture-backed SaaS or AI company carries almost nothing on its balance sheet relative to its price: the value sits in source code, machine learning models, patents, customer contracts with high net revenue retention, and brand. Even in traditional US mid-market businesses, customer relationships, trade names, and proprietary know-how routinely account for the majority of the purchase price in an acquisition.

Corvian Advisory values the full range of intangible assets for US-connected businesses: patents and patent portfolios, software and source code, AI and machine learning models, proprietary algorithms and data assets, trademarks and brands, customer relationships and contracts, non-compete agreements, and trade secrets. Methods follow international best practice consistent with both IVS and US purchase accounting convention (ASC 805 / ASC 820 concepts mirror IFRS 3 / IFRS 13): relief-from-royalty for brands and technology licensing, the multi-period excess earnings method (MPEEM) for customer relationships and core technology, with-and-without for non-competes, and replacement cost for assembled workforce and internally developed software.

Our US practice most often serves cross-border situations: GCC and international investors acquiring US technology businesses and needing purchase price allocation; US companies establishing Gulf operations that require arm's-length IP licensing rates for transfer pricing; family offices holding US SaaS and software assets requiring periodic fair value reporting; and founders relocating between the US and the Gulf who need defensible valuations across both jurisdictions.

Who values intellectual property and intangible assets for US businesses? Corvian Advisory provides CFA-led, IVS-compliant IP, software, AI, and intangible asset valuations for US and cross-border engagements — accepted by Big 4 auditors and international investors. See our dedicated intangible asset valuation, brand & trademark valuation, startup valuation, and purchase price allocation services.

Get In Touch

Start a Confidential Conversation
About Your Valuation or Transaction

Every engagement begins with a confidential discussion – no pressure, no obligation. Tell us what you need: an independent valuation, a deal you are working on, or a transaction you are evaluating. We respond within 24 business hours. All communications are strictly confidential.

Location
Dubai, United Arab Emirates
Serving UAE · KSA · Qatar · Kuwait · Bahrain · Oman · EMEA · APAC
Response Time
Within 24 business hours · All communications strictly confidential

Thank you. We will respond within 24 business hours. All communications are strictly confidential.