What do I do if I have audit questions about my 409A?
Carta supports all 409A Valuations completed by Carta Valuations, LLC through financial audits. Any audit questions about the 409A report and resulting FMV can be sent to our team at audit@carta.com. Please attach written questions from your auditors in either a word or excel document. Also, ensure that you have included the legal name of the company in question and the valuation date of the report that there are questions about, as well as the audit firm conducting the audit.
Based on Carta’s extensive experience of going through valuation audits, there is a process that we prefer to follow with the goal of making it as efficient and productive as possible. As all audits require documentation, we require that auditors provide us with their written questions and we will provide our written responses to those questions. If there are items that cannot be resolved through documentation, a call can be arranged to discuss those points if needed. We find that this process is the most efficient for all parties, in addition to satisfying the auditor's documentation requirements.
Turnaround time from receipt of questions is typically ~5 business days.
Are Carta's 409A valuations independent?
Yes. Carta conducts its 409A valuations through Carta Valuations LLC, a separate business entity that is operationally firewalled from Carta's cap table platform. Valuations analysts are not involved in any secondary transactions on the platform and focus exclusively on 409A appraisals. Carta Valuations LLC meets IRS standards for a qualified appraisal, including the credential and experience requirements for appraisers. The results of a 409A valuation have no impact on or interaction with Carta's cap table software.
Can Carta Valuations sign a third-party service agreement, NDA, or other form related to our valuation report?
Every 409A report Carta delivers is an official corporate document featuring Carta's formal designation, valuation team credentials, and a Summary section that certifies the FMV conclusion. Carta stands behind its valuations as a corporate entity and does not sign additional forms. Privacy coverage is provided under the Master Service Agreement for Carta.