409A Valuation and Liquidation Preferences: What Founders Should Know 409A valuations and liquidation preferences are closely linked in determining fair market value for startups. Liquidation preferences affect how proceeds are distributed among investors and common shareholders during exit events. Founders must understand these terms, as they impact employee equity, investor negotiations, and overall company valuation in compliance with IRS regulations. Visit https://www.ganjingworld.com/news/1hv9v6rkv1a5RcTFH8aPvW0wn12n1c