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The Cost of Losing a Key Person: Understanding the Impact of Key Person Discount on Business Value

Equilest

However, losing a key person can also impact the valuation, resulting in a key person discount that reflects the potential risks and uncertainties associated with their departure. Learn more about key factor discount. "A The cost of increased marketing is estimated at $50,000.

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The Difference Makers: Key Person(s) Valuation

Musings on Markets

The framework can also help explain how the value of a key person can evolve over time, from a significant positive at one stage of an organization to neutral later or even a large negative, explaining why some key people get pushed out of organizations, including those that they may have founded.