Software Valuation
409A valuations, M&A software asset valuations, and financial reporting from a CPA-led team that has built, valued, and exited technology companies.
AI-native companies command 25-37x revenue multiples. Template valuations miss this entirely. Our team includes a CPA and a financial engineer — combined with firsthand experience building and exiting a technology company. We produce defensible valuations, not fill-in-the-blank templates.
Starting at $15K | 1-4 weeks
Services
409A Valuation
Fair market value for IRC Section 409A compliance. Option pricing, comparable analysis with AI-native adjustments, and DLOM analysis. Audit-ready report.
1-2 weeks
M&A Software Asset Valuation
Three-approach valuation: cost (COCOMO II), market (comparable transactions), and income (DCF). Includes AI asset valuation for companies with ML/AI components.
2-4 weeks
Financial Reporting Valuation
ASC 805 purchase price allocation, ASC 350 impairment testing, and FASB ASU 2025-06 compliance. Defensible reports for audit committees and external auditors.
2-4 weeks
Expert Witness
Testimony on software valuation, IP disputes, and damages quantification. Published research and 4,000+ academic citations backing opinions.
As needed
Why us
CPA-led, not template-driven
Our valuations are led by a CPA and supported by a financial engineer with AI auditor credentials. Every assumption is documented, every comparable is justified, and every report is built to withstand Big 4 audit scrutiny.
We understand AI multiples because we build AI
We trained the first Fairly Trained LLM and published in Science on AI capabilities. When we value an AI company, we can assess the defensibility of the moat — proprietary data, model architecture, talent — not just apply a generic multiple.
Operator experience, not just advisory
We founded, built, and exited LexPredict (acquired 2018). We've been on both sides of the valuation table. That operator perspective means we understand what drives enterprise value in a technology company — and what destroys it.
Why licens.io?
| Big 4 | licens.io | |
|---|---|---|
| AI premium | Template comparable sets | Understand 25-37x AI multiples |
| Credentials | Generic appraiser | CPA, M.S.E. Financial Engineering, AI Auditor on one team |
| Operator view | Advisory only | Founded and exited LexPredict |
| Research | Appraiser opinion | 4,000+ citations, published in Science |
| FASB readiness | Catching up | Advising on ASU 2025-06 now |
| Pricing | $1.5K templates or $50K+ Big 4 | Fixed-fee, $15K-$60K |
AI premium
Big 4
Template comparable sets
licens.io
Understand 25-37x AI multiples
Credentials
Big 4
Generic appraiser
licens.io
CPA, M.S.E. Financial Engineering, AI Auditor on one team
Operator view
Big 4
Advisory only
licens.io
Founded and exited LexPredict
Research
Big 4
Appraiser opinion
licens.io
4,000+ citations, published in Science
FASB readiness
Big 4
Catching up
licens.io
Advising on ASU 2025-06 now
Pricing
Big 4
$1.5K templates or $50K+ Big 4
licens.io
Fixed-fee, $15K-$60K
Who this is for
- ✓ VC-backed startups needing 409A valuations that properly account for AI components
- ✓ PE and corp dev teams needing M&A software asset valuations for deal pricing
- ✓ Boards and audit committees needing financial reporting valuations (ASC 805, ASC 350)
- ✓ AI-native companies with valuation premium complexity that template providers miss
- ✓ Law firms needing expert valuation testimony for IP disputes or damages quantification
Frequently asked questions
How much does a 409A cost for an AI company?
Our 409A valuations for AI-native companies typically range from $15K-$30K. The premium over a template valuation reflects the work required to properly account for AI assets, training data value, and the higher multiples AI companies command. A $1,500 template will not hold up if your company has meaningful AI components.
What valuation methodologies do you use for software assets?
We use all three standard approaches: cost (COCOMO II and replacement cost), market (comparable transactions with AI-specific adjustments), and income (discounted cash flow). For M&A valuations, we triangulate across all three. For 409As, we weight based on the company stage and available data.
How do you account for the AI premium in a 409A?
AI-native companies are trading at 25-37x revenue versus 6x for traditional SaaS. We adjust comparable sets to reflect this, analyze the defensibility of AI moats (proprietary data, model architecture, talent), and document why the premium is warranted. Auditors expect this level of specificity.
What is FASB ASU 2025-06?
FASB ASU 2025-06 changes how companies account for software development costs, affecting capitalization rules and impairment testing. It applies to fiscal years beginning after December 15, 2025. We are advising clients on implementation now, before the standard takes effect.
What is the difference between a 409A and an M&A valuation?
A 409A determines fair market value for tax compliance — it values the entire company to set a strike price for options. An M&A valuation values specific software assets for deal pricing, purchase price allocation, or financial reporting. Different standards, different methodologies, different audiences.
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Read moreNeed a defensible valuation?
Whether you need a 409A for your next board meeting or an independent valuation for a deal, we'll give you a defensible report — not a template.