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In this post, we introduce the standards of the major business valuation professional associations and then discuss how the standards define a marketability discount as well as the concept and application of discounts and premiums. We end this post with an introduction to the three basic valuation approaches: asset, market, and income.

This post develops a conceptual overview of the market approach for developing the largest valuation discount, the marketability discount.

In this installment on the marketability discount, we tackle the topic of marketability discounts and the income approach. The post is long and theoretical but the topic demands it.

In this post, we take a breath to review where we’ve been and prepare the reader for where we’re headed in this discussion of the largest valuation discount – the marketability discount.

In a tax environment where significant gifts need to be made and substantial value needs to be transferred, the topic of valuation discounts rises to the forefront. Valuation discounts are not magical or mysterious. They relate to differences between businesses at the level of the enterprise and interests in those businesses from the viewpoint of […]

The Basic Question The objective of many business appraisals is to determine a valuation conclusion at the nonmarketable minority level of value. We saw in the first post in this series on discounts for lack of marketability that the marketability discount is a conceptual discount that moves value from an enterprise level to a shareholder […]

  A New Series  During the 2012 calendar year, individuals can gift, or give away, as much as $5.12 million and pay no federal gift taxes on the gifts, although this amount is reduced by the amount of any taxable gifts made in prior years. In the absence of a Congressional change in the law, […]