Abhi Mathews CBV CFA Blog | Value vs. Price: Marketability Discount | TalkMarkets
Managing Director - Capital Raise, M&A and Valuations
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Abhi Mathews is a Managing Director at a FINRA broker dealer, a Principal at Minerva Valuations and an officer/board member at Brera Holdings. He has structured and raised equity capital, senior debt, debentures, convertible notes and preferred shares for public and private entities. He has ...more

Value vs. Price: Marketability Discount

Date: Thursday, October 24, 2019 12:51 PM EST

The marketability discount is a discount on the common shares of a business that are not publicly traded, reflecting a lack of liquidity, or the difficulty in selling the shares on the market. This discount typically ranges from 5 – 50% and is often based on the Mandelbaum factors (Bernard Mandelbaum, et al v. Commissioner of Internal Revenue). This case laid out 10 factors that one should consider in determining the appropriate marketability discount on private company common shares.
 

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