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Mercer’s Musings #4: Factors to Consider in Valuing Partial Ownership Interests

Chris Mercer

Provisions in the organizational and governance documents that affect the rights, restrictions, marketability and liquidity of the subject interest. Defined expiration or termination dates contained in the governing documents, or other external factors, that may precipitate a foreseeable liquidation or sale of the underlying entity.

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How to Value a Business in the Diversified Real Estate Activities Industry

Equilest

Market volatility, regulatory changes, interest rate fluctuations, tenant turnover, and project-specific risks are examples of factors that can impact a company's value. Assessing and quantifying these risks helps determine an appropriate discount rate or risk premium when calculating the company's value.