February 2020
When it comes to valuing less than a 100% interest in a business, what factors should be taken into consideration? In addition to the type of interest being valued (voting vs. nonvoting, common stock, carried, etc.), discounts for lack of control and marketability may need to be added into the equation. However, one of the most valuable sources of information lies in a business’ legal documents. These documents can provide information regarding the actual rights, powers and cash flows available to an interest in that business.
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