Experienced. Proven. Trusted.
Helping Venture-backed Technology Companies
Mitigate Risk And Maximize Their Outcome.
Eton Venture Services is an independent advisory firm singularly dedicated to assisting venture-backed
technology companies and venture capital funds protect and maximize returns to
their investors, management and employees.
Experienced, Independent, Responsive
As a private company, you’ve assembled a team of talented, passionate people who share your vision and know that attracting and retaining the very best talent is critical to your company's success. Creating appropriate incentives to align individual and company success is a top priority. Granting stock options is one of the easiest and most commonly used incentives at your disposal.
Section 409A of the Internal Revenue Code imposes 20% tax penalty on nonqualified deferred compensation, including certain stock options. To avoid these penalties, stock options must not be issued with an exercise price below their fair market value at the time of grant. Options issued below fair market value can result in additional tax liability on your employees and tax penalties on your company for failure to appropriately withhold these taxes. Section 409A provides a "safe harbor" where the IRS must presume that the Company's determination of fair market value meets the requirements of Section 409A if supported by the opinion of a qualifed, independent valuation firm. Companies relying on this safe harbor should obtain an indpendent valuation at least annually (and more frequently if an event has occured that would make reliance on the old valuation unreasonable, such as a new financing event, a significant upturn in business, an acquisition by the company or the like).
At Eton Venture Services, we have over 40 years experience working with venture-backed private companies and have a unique understanding of their operations and complex capital structures. We take pride in providing personal service and timely delivering accurate and thorough reports that are usable by financial and non-financial executives and board members.
Eton Venture Services’ representation of stockholders in M&A exit transactions begins in the earliest days of the negotiation of the definitive sale agreement, through the signing and closing of the transaction and continues until the last dollar has been returned to the stockholders from the escrow fund – all with one thought in mind – maximizing exit transaction proceeds to shareholders.
During your exit transaction, Eton Venture Services professionals will:
Effective, Trusted, Skilled
Consult regarding best practices with management and legal counsel on indemnification and escrow terms during the negotiation of definitive agreements.
Manage all post-closing communications with former shareholders and buyer.
Inform company shareholders of transaction and escrow fund status.
Monitor, investigate, defend, negotiate, settle or litigate claims made by buyer on the escrow fund.
Oversee the expense fund established to defend against any escrow claims by buyer.
Supervise return of escrow funds and remaining expense account funds to the company’s stockholders.