Chris Mercer

MARCH 8, 2023

This post provides a discussion of several implications of the definition of the standard of value known as fair market value. We focus first on the definition of fair market value. We then look at the implications for the so-called “marketability discount for controlling interests.”

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Chris Mercer

FEBRUARY 23, 2024

My conclusion is that the various restricted stock studies are inadequate to meet current business valuation standards and that they should not be used as a basis for “guessing” the magnitude of marketability discounts for illiquid interests of closely held businesses. These discounts, some will say, are very low. We will see.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Chris Mercer

MARCH 7, 2024

My current series of blog posts is titled “Mercer’s Musings.” The beginning point of the valuation of a partial ownership interest is almost always the value of the underlying business or asset. This is the “base value” that has been addressed in a number of posts on this blog.

Dividends 52

Dividends Appraisal Terminal Value Marketability 52