How do I select similar public companies for my 409a?
It is often the case that newer companies are creating products that do not qualify for placement in a clearly defined peer group. There are often very few or even no publicly traded companies that are comparable to these companies.
When selecting similar publicly traded companies, look for businesses that operate within the same industry, share a similar business model or would be directly disrupted by the impact of your operations. For example, for a company developing a virtual reality gaming product - select firms that operate within the video game industry i.e. Electronic Arts and Zynga.