The Importance of Business Valuations for Employee Stock Option Plans

One area where a business valuation may be required is if you're looking at bringing on any sort of employees or if you've got employees who are already existing shareholders but they want to execute some of their share purchase options. So in this instance you've likely got a very sophisticated business. In many instances it would be an annual business valuation that would be required to be performed But a lot of these times there's a triggering event and that's the execution of an employee stock option purchase and at that time we need to establish if it's not a, if it's not a public company. Right this is for private companies that don't are not traded on the stock exchange. To establish the value of a private company requires a chartered business valuator and to have a full comprehensive business valuation completed. And if that's the case if that is something that happens inside your business our team of charter business valuators would be able to support you with that.