A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 5 years ago
How do i calculate an illiquidity discount for a private company
anonymous
 5 years ago
How do i calculate an illiquidity discount for a private company

This Question is Closed

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0I am assuming you mean illiquidity by the fact that owners cannot cash out or sell the business anytime they want. This is a hard one and finance research is still trying to figure it out. I am not sure how you would calculate the discount because you have to compare it to some other benchmark in order to see whether if it is discounted or not.

anonymous
 5 years ago
Best ResponseYou've already chosen the best response.0There are a couple of methods. I recommend you read "Business Valuation Discounts & Premiums" by Shannon Pratt for a good idea on the studies and approaches that are used.
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.