Nasdaq Private Market partners with april to estimate the tax impact of equity transactions

At april, we know that tax impacts virtually every financial decision throughout the year, from getting a loan to accepting a job offer. In our latest effort to embed tax where financial decisions are made, we partnered with Nasdaq Private Market (NPM) to build and launch Equity Simulator, a first-of-its-kind solution that calculates the tax impact of private company equity transactions – including income, capital gains and alternative minimum tax - at the point of decision making.

NPM enables the buying and selling of private company shares, unlocking secondary liquidity for both companies and their employees. While selling shares through secondary transactions enables employees to access life-changing liquidity, it is also often accompanied by significant tax implications. Structured liquidity programs usually operate during set windows of time, and getting professional tax advice during these windows isn’t always feasible. Instead, employees have historically leaned on their company’s Equity, Finance and HR teams to answer questions, which often leads to more general information and less employee-specific clarity.

To provide employees with a self-service tool that can head off any surprise increase to their taxes - like a shift to their tax bracket or owing Alternative Minimum Tax (AMT) - and to help HR and Finance teams focus on what they do best, NPM teamed up with april to embed our Equity Simulator directly into its liquidity program platform.

This launch marks the first instance that tax forecasting tools are available on Nasdaq Private Market’s platform at the moment of decision making in structured company liquidity programs, and is the newest addition to april’s tax filing and year-round tax planning experiences.

“NPM is proud to offer shareholders real-time estimates of the tax impact of their private company equity transactions,” said Andrew Kroculick, COO Nasdaq Private Market. “With april’s tax engine, we’ve been able to embed sophisticated tax insight directly where decisions happen, enabling employees and shareholders to move forward with confidence, while freeing Equity, Finance and HR teams to focus on strategic priorities instead of one-off tax questions.”