Also, missing in this discussion is that the board likely has to ratify any change in ownership and the board (led by the CEO) has tremendous ability to just say no and/or dictate who and at what price can buy. All this discussion of the what the fair value of the shares might be to outside investors is somewhat irrelevant in that situation.
Yes but it can actually cause problems if the board approves a lower price than the 409a valuation. He has some leverage in that respect, especially if his sale of shares can be worked into the funding round.
