Simplify your ESS valuation process
In Australia's competitive talent market, Employee Share Schemes (ESS) are vital for attracting and retaining top talent. We've partnered with Standard Ledger to provide ATO-compliant valuations that make implementing your ESS straightforward and efficient.
Standard Ledger brings:
Deep expertise in Australian tax legislation
Specialized in startup financial compliance
Seamless integration with Equidam for efficient valuations
Simplify your ESS valuation process
In Australia's competitive talent market, Employee Share Schemes (ESS) are vital for attracting and retaining top talent. We've partnered with Standard Ledger to provide ATO-compliant valuations that make implementing your ESS straightforward and efficient.
Standard Ledger brings:
Deep expertise in Australian tax legislation
Specialized in startup financial compliance
Seamless integration with Equidam for efficient valuations
Benefits of our valuation service
Reliable analyses. Honest fee structures. Effortless execution.
All the essentials to ensure compliance, substantiate your valuation, and power your equity program—no unexpected add-ons.
ATO Compliant Valuations
ATO Compliant ValuationsOur ESS valuations meet all ATO requirements, ensuring your startup qualifies for the ESS startup concession and tax benefits.
Expert Guidance
Receive professional advice from specialists with deep knowledge of Australian ESS regulations and valuation methodologies.
NTA & Formal Valuations
We provide both NTA and formal valuation methods depending on your startup's specific needs and eligibility.
Fast Turnaround
Get your ESS valuation within 1-2 weeks for NTA valuations, and 3-4 weeks for formal valuations.
Why ESS valuation matters for startups
For Australian startups, implementing an Employee Share Scheme (ESS) is a powerful way to attract, motivate, and retain top talent. But to ensure your ESS is both compliant and effective, you need an accurate valuation of your company's shares.
Regulatory Compliance
The Australian Taxation Office (ATO) requires shares or options to be issued at or above market value. A compliant valuation ensures your employees can access tax concessions, deferring tax until they sell their shares.
Employee Trust & Retention
A transparent, defensible valuation builds employee confidence in the long-term potential of their equity stake. This creates powerful retention incentives that cash alone can't match.
Investment Readiness
A well-documented valuation reassures potential investors that you're managing your equity thoughtfully, simplifying due diligence during fundraising and reducing friction in negotiations.
Understanding ESS valuation options
Choosing the right valuation approach for your ESS depends on your company's stage, size, and eligibility. We offer both valuation methods to ensure you get the most appropriate solution for your startup.
NTA Valuation
NTA ValuationThe Net Tangible Assets method calculates share value based on tangible assets minus liabilities, divided by outstanding ordinary shares.
Eligibility:
- Hasn’t raised more than $10M in the last 12 months
- Less than 7 years old OR earning under $10M revenue
- Prepares financial reports
Pros:
- Simple and cost-effective
- Faster process (1-2 weeks)
- Often results in lower valuations
- Ideal for smaller companies
Formal Valuation
Formal ValuationWhen a startup outgrows NTA eligibility, a formal valuation becomes necessary, assessing the company's future earning potential using multiple methodologies.
Methodologies:
- Discounted Cash Flow (DCF) models
- Comparable market transactions
- Industry multiples
Pros:
- More accurate valuation
- Accounts for intangible assets
- Better for fundraising
- Detailed forecasts
The valuation process
Our streamlined ESS valuation process is designed to be efficient and hassle-free, delivering a high-quality, ATO-compliant valuation with minimal time investment from your team.
Check Your Eligibility
Determine whether you qualify for an NTA valuation or require a formal valuation based on your company's age, fundraising history, and revenue
Update Your Equidam Profile
Ensure your financial statements, cap table, and projections are current and accurate
Engage Standard Ledger via Equidam
Complete your company valuation through our platform and share any additional documents if needed
Valuation Analysis
Experts will apply the appropriate methodology to analyze your data and determine a defensible share value
Preliminary Report
Review draft together with professional and discuss assumptions and preliminary findings
Receive Your Report
Get your comprehensive, ATO-ready valuation report with full documentation and support
Common mistakes & how to avoid them
Even with streamlined processes, there are pitfalls that can cause headaches down the road. Here are the most common mistakes we see and how to avoid them.
Relying on Outdated Valuations
Share prices change as your company grows. Using old valuations can lead to tax issues.
Solution
Refresh valuations annually or whenever you raise funds.
Ignoring Preference Shares
Preference shares have different rights and therefore affect NTA calculations.
Solution
Document them correctly in your cap table and ensure valuations account for them.
Missing Eligibility Changes
Growing beyond NTA thresholds without updating your valuation.
Solution
If you raise more than $10M or turn 7 years old, prepare for a formal valuation.
Inadequate Documentation
The ATO may request documentation years after your valuation.
Solution
Keep detailed records of the process and methodology used for all valuations.
Get your ESS valuation
NTA Valuation
A$1,500
Fast, cost-effective valuation for eligible early-stage startups
ATO-compliant NTA methodology
10-day standard turnaround
Full documentation for ATO submission
Eligibility assessment
Post-valuation consultation
Six months of support
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Formal Valuation
A$5,000
Comprehensive formal valuation for growth-stage companies
Full methodological analysis (DCF, comparables)
3-week standard turnaround
Complete ATO documentation package
Cap table review and analysis
Expert consultation session
One year of valuation support
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Frequently asked questions
Everything you need to know about our ESS valuation.
An ESS valuation determines the market value of your company’s shares for your Employee Share Scheme. It’s legally required in Australia to issue shares or options at or above market value, ensuring your scheme is tax-compliant and defensible with the ATO.
You qualify if your company is unlisted, incorporated less than 10 years ago, has aggregated turnover ≤ $50 million, imposes a minimum three-year holding period, and issues shares/options at or above market value.
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NTA Valuation calculates value as (tangible assets – liabilities) ÷ ordinary shares. It’s fast, cost-effective, and usually results in a lower strike price—but only applies if you’ve raised ≤ $10 million in the last 12 months, are under 7 years old (or earn ≤ $10 million revenue), and prepare financial reports.
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Formal Valuation uses DCF models, comparable transactions, and industry multiples to capture intangible and growth potential. It’s more accurate and defensible but costs $5K–$20K+, takes 4–12 weeks, and requires detailed projections.
Equidam centralizes your financial data, forecasts, and cap table. Standard Ledger accesses this data directly—eliminating duplicate entry—and applies either the NTA or Equidam-powered formal valuation framework to deliver an ATO-compliant report in days (NTA) or weeks (formal).
Annually or after any significant funding round. Using an outdated valuation can trigger compliance risks and misalign employee incentives.
If you’re shopping around, we recommend exploring our site a bit — you’ll find information about why to choose us, our valuation report, data sources, methodology, and more. Plus, our Help Center has lots of helpful information.
If you need to get in touch with our team, you can always do so via the chat on the bottom right corner.
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Streamline your ESS valuations in Australia
Get clear and defensible share valuations to power your equity strategy and retain top talent.