Not sure what your closely held business would be worth? CST Group partner Joe Romagnoli CPA, explains some commonly used discounts in this free download.
Whenever valuing a minority ownership, i.e. less than 50% ownership of a closely held business, it is necessary to include discounts to the final valuation to reflect the minority interest and lack of marketability. These discounts, typically used in fair market value calculations, reflect the negative effects of lack of control and inability to sell or liquidate the minority interest at will. Download this free article to learn more about the common discounts used when valuating these businesses.
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