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No Marketability Discounts or Discounts for Illiquidity for Controlling Interests of Companies

Chris Mercer

However, in most circumstances, transaction costs are not factored into the appraisal of the subject interest since the pricing information of frequently traded comparable securities is not adjusted for these factors.” Appraisers use transaction multiples from transactions in similar companies with the guideline transactions method.

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Deja Vu #11: Can Restricted Stock Studies Be Used to Estimate DLOMs for Dividend-Paying Companies?

Chris Mercer

Were also bigger and had higher market capitalizations and better operating performance, on average. The expectation of larger future dividends relative to smaller future dividends would mitigate the marketability discount for the higher dividend-paying investment. This is just common sense. Refer to the initial figure.

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Enhancing Valuation through Employee Ownership: The Benefits of ESOPs for Start-ups

Equilest

The value of the stock is determined by an independent appraiser and is used to calculate the value of an employee's benefit under the plan. Different methods can be used to value a company's stock, and the choice of method will depend on the specific circumstances of the company and the purpose of the valuation.

article thumbnail

Enhancing Valuation through Employee Ownership: The Benefits of ESOPs for Start-ups

Equilest

The value of the stock is determined by an independent appraiser and is used to calculate the value of an employee's benefit under the plan. Different methods can be used to value a company's stock, and the choice of method will depend on the specific circumstances of the company and the purpose of the valuation.