Minority, lack of marketability & lack of control
The combination of our experience and industry expertise allows us to reliably deliver hundreds of Minority, Lack of Marketability and Lack of Control Valuations. With eight offices worldwide, BRAUN performs more than $1 billion of valuation assignments annually.
Perhaps the most common valuation discount is the discount for lack of marketability. The discount for lack of marketability can be the valuation adjustment with the largest monetary impact on the final determination of value. The discount for lack of marketability is a downward adjustment to the value of an investment to reflect its reduced level of marketability. The discount for lack of marketability reflects the lack of a ready market for the shares of a closely held corporation and the inability to convert the investment into cash in three working days.
The discount for lack of control, which is also a minority interest discount. Minority interest discounts are the inverse of control premiums. A discount for lack of control represents a reduction from the pro rata share of the value of an entire business to reflect the absence of the power of control. The value of control is dependent on the shareholder’s ability to exercise any or all of a variety of rights typically associated with control.
We are experts in selling partnership interests. Our valuation team has successfully defended our valuation opinions in front of the IRS.
As an industry leader in partnership interest sales, we have the actual market data and experience.