Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Jan 2008
Minimum Marketability Discounts, 3rd Edition
Minimum Marketability Discounts, 3rd Edition
FASA, CBA
Page Range: 18 – 22
The objective of this study of LEAPS is to contribute to improved substantiation of the discount for lack of liquidity, long a concern of both valuation practitioners and courts. The study shows that the stocks of even the largest and most secure companies have discounts of 10% or more. For companies with sales revenues under $500 million, discounts of 23% to 36% are common.Abstract
Copyright: © 2008 American Society of Appraisers
Contributor Notes
Ronald Seaman, FASA, CBA, is the founder of Southland Business Group, Inc., a business appraisal firm in Tampa, Florida. He earned degrees from Hamilton College and Harvard Business School.