I know that you think that I am becoming repetitious but it is imperative that you understand that a valuation is the cornerstone of what we do and provide, even in a start-up.
We continue to insist that any time employer stock is transacted a valuation from a certified, licensed, independent 3rd party valuator must take place. As a matter of fact on August 10th 2010 the IRS Employee Plans Division presented a phone forum on Abusive Tax Avoidance Transactions and Emerging Compliance Issues. The IRS stated that stock in ROBS transactions is currently being exchanged without any real attempt to determine its value.
The stock is said to be equal in value to whatever happens to be available to exchange for it which creates a prohibited transaction. Good luck with that. If you are ever audited questions will arise as to what determined the true value of the purchase. We
eliminate that risk. So I will repeat myself, “STAY COMPLIANT.”