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I assume you mean incentive stock options at private companies as opposed to the very common derivatives on publicly traded stocks because “Employee Stock Options” was clicked on the question category. The price of public stock options is kind of obvious since you just need to click Option Chain on any stock website to get that answer. The former has no official market price but the 409A appraisal report commissioned by the company periodically is the closest thing to an official price.The 409A price will take into consideration the independent pricing from investors, financial comparables, as well as secondary sales of the particular stock. However, it prices employee common stock which has a marketability restriction. That restriction against selling calls for an automatic discounting of approximately 20% - 35% that varies by stage. It also has a discount to the latest preferred stock price that diminishes as the company gets closer to liquidity event where the preferred stock will convert to common. If the company is trending towards a weak liquidity event, then the % discount to preferred will actually increase.In summary, the most recent 409A + 25% - option exercise price is a reasonable proxy for the market value of an incentive stock option at a later stage company that can be exercised and sold. An employee stock option that can be exercised but not sold should be valued at 409A - option exercise price.

In order to be compliant with CPPA and USPAP - Canadian Personal Property Appraisers and Universal Standards for Professional Appraisal Practice; Appraisals, Valuations and Evaluations must follow the following format:Appraisal ReportSummaryFair Market Value Ongoing Operation (or equivalent)Conditions and Limitations of Appraisal ReportCertification of ReportPurpose of the ReportDefinitions of ValueBasis of AppraisalEffective Date of ValuationLimitations on Business being EvaluatedMethod of ValuationDescription of BusinessFactors Affecting ValueConclusionCURRICULUM VITAEI wrote a book last year on business valuation called 25 Factors Affecting Business Valuation. These are the primary factors involved:FACTORS AFFECTING VALUEKey Point: If someone is presenting or proposing a valuation without taking these 25 factors into consideration; the valuation number is likely to be misleading and almost certainly “not accurate” for a small business.HistoryPurposeFinancialsReturn on InvestmentHow has R&D been accounted for?Shareholder Agreement (if one exists)Value of Employees (cost of recruitment and training as a group)Value of Client Base and rebuild costValue of Supply ChainValue of Distribution Network if one existsInternet Presence and Use (social network)Dominance if any in the marketplaceKnowledge Base of Owner and EmployeesProcesses, Procedures, and SystemsDocumentation (how well are all aspects of the company documented)Industry AveragesTerms of leaseLeasehold ImprovementsEquipmentInventoryRiskCost of Liquidation (if applicable)OpportunityLiquidityLeverage - Cost of money. Is leverage or applicable and if so at what risk?Minority Interest (if applicable)Special Interest Purchaser - (partners are also special interest purchasers as they have more knowledge, interest, and opportunity, with less risk than regular buyers)Redundancy in Management - How well is the business/practice expected to function with changes in management. (if applicable)Terms of Sale (if relevant) A sale with little down and the seller remaining at significant risk would demand much higher price than an all cash sale.Return on Investment is always our first and last consideration.

Great questions. Here are some things sellers don’t like about FHA loans:It takes usually 45–60 days to close, while conventional loans can close in 30 days.FHA appraisers are looking for mold, trip hazards, that the heat, water, etc work, go up in attacks, won’t allow illegal in-law apartments, etc.Anything that the FHA appraiser finds that will impede the sale, has to be fixed by the seller, then the buyer will pay for a reinspection fee and the appraiser will go back to take pictures and verify the work has been done. Issues arising: cost of extra repairs that with the exception of mold, conventional appraisers won’t bring up, also timing, as any issues will extend the closing day.The FHA appraisal report stays with the property for 6 months, so if the deal fells through as the report came in low or for any other reason, the seller won’t be able to sell to another FHA buyer at a higher price for at least 6 monthsLast but not least, the seller has to sign an FHA Amendment that says the house has to appraise for the contract price, so if the appraiser's report comes to a lesser amount, the seller has to either lower the price or cancel the contract. ( Buyer could also bring the extra cash at closing)In summary, FHA is a great loan product if the listing agent is knowledgeable about it, informs the seller how it works, and inspects the property for what FHA is looking for. Any repairs can be done ahead of time and most issues can be worked out.There is another FHA loan product called “FHA 203K renovation loan” which will be an excellent way to get an older property or a home that’s not in the best condition sold, as in that case the lender will give the buyer funds to fix up the issues and even completely remodel the home and everything the appraiser finds is thrown in the “rehab loan”.