The Difference Makers: Key Person(s) Valuation
Musings on Markets
DECEMBER 10, 2023
In appraisal practice, the effect of the potential loss of an owner, founder or other key person in a business that you are acquiring is usually captured with a key person discount , where you price the business first, based upon its existing financials, and then reduce that pricing by 15%, 20% or more to reflect the absence of the key person.
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