Remove Fair Market Value Remove Specific Risk Remove Terminal Value
article thumbnail

Mercer’s Musings #4: Factors to Consider in Valuing Partial Ownership Interests

Chris Mercer

Simply put, the expectation of dividends or distributions from investments in partial ownership interests is important to investors, whether hypothetical in the context of fair market value determinations, or real investors who put real money at risk. Paragraph 8 above, with its sub-paragraphs a.

article thumbnail

Startup Valuation: The Ultimate Guide

Equidam

with Section 409A) require companies to establish the Fair Market Value (FMV) of their common stock through a formal valuation process. [6] 23] Equidam uses country-specific risk-free rates (10-year government bonds) and market risk premiums (sourced from Damodaran). [23]