Chris Mercer

FEBRUARY 23, 2024

My conclusion is that the various restricted stock studies are inadequate to meet current business valuation standards and that they should not be used as a basis for “guessing” the magnitude of marketability discounts for illiquid interests of closely held businesses.

Marketability 52

Marketability Terminal Value Dividends Discounted Cash Flow 52

Chris Mercer

MARCH 8, 2023

This post provides a discussion of several implications of the definition of the standard of value known as fair market value. We focus first on the definition of fair market value. We then look at the implications for the so-called “marketability discount for controlling interests.”

Fair Market Value 52

Fair Market Value Marketability Appraisal Business Valuation 52

Chris Mercer

MARCH 29, 2024

Introduction and Conclusion My musings on the use of restricted stock discounts to estimate marketability discounts (or DLOMs) have led me to the conclusion: Restricted stock studies/discounts cannot be used to estimate DLOMs in any credible, standards-compliant manner. Three of the first four Mercer’s Musings posts address this issue.

Marketability 52

Marketability Appraisal Business Valuation Dividends 52

Chris Mercer

MARCH 7, 2024

My current series of blog posts is titled “Mercer’s Musings.” The third musing illustrates the depth of analysis necessary to reasonably address the complexities and nuances in valuing illiquid minority interests of private companies. Market data on transactions in similar markets, if any.

Dividends 52

Dividends Appraisal Terminal Value Business Valuation 52