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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 Some employees start looking for new jobs, which increases turnover.

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The Difference Makers: Key Person(s) Valuation

Musings on Markets

While it is often assumed that key people, at least from a value perspective, are at the top of the organization, usually founders and top management, we will begin this section by expanding the key person definition to include anyone in an organization, and sometimes even outside it.