Common Discounts Used in Valuations of Closely Held Businesses

Common Discounts Used in Valuations of Closely Held Businesses

Common Discounts in Valuations of Closely Held Businesses Free DownloadWhenever 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. Want to read the full article?

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