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Fair Market Value and the Nonexistent Marketability Discount for Controlling Interests

Chris Mercer

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.”

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Mercer’s Musings #3: Marketability Discounts Re Two Hypothetical Minority Interests

Chris Mercer

The Value of an Interest in a Business The value of an interest in a business is similarly defined by the expected cash flow to the interest , the expected growth in value of the interest over the expected holding period, and the expected terminal value of the interest at the end of the expected holding period.

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Approaches and Methodologies Considered When Appraising Your Business

BV Specialists

Under the “Discounted Future Earnings” approach, the appraiser will estimate value primarily from future income probability, or forecasts, over a fixed period of time, to a terminal value, and discount this back to the present. Market Approach. >The

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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.

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How can I learn to valuate a company?

Equilest

Liquidation Value: This method assesses the value of the company's assets if they were to be sold off in a liquidation scenario. Adjusted Net Asset Value: Adjusted Net Asset Value considers the fair market value of assets and liabilities, providing a more realistic estimate of the company's value.