Description:

The Discounts for Lack of Control and Marketability Toolkit provides all the tools necessary to identify supportable discounts applicable to minority equity interests.  

Discount for Lack of Control:
Based on an analysis of control premiums paid in recent transactions, this toolkit provides a supportable benchmark discount for lack of control for all major industries.  The toolkit walks the reader through the necessary steps to adjust the discount based on several factors, such as ownership structure of the entity, "swing-vote potential" of the interest being valued, as well as numerous other factors. 

Discount for Lack of Marketability:
This toolkit summarizes the results of several marketability studies, with the end-result being a highly supportable discount for lack of marketability.  The toolkit quantifies the impact of numerous factors, such as the impact from rights of first refusal, transfer restrictions, and other factors that impact the marketability of a minority interest. 

Market Data Included in This Toolkit:

• Transaction data for over 1,000 acquisitions of publicly-traded companies since 2007
• Summarized discount/pricing data for 79 publicly-traded real estate investment trusts (REITs)

Additional Resources Included:

• Instructions - Detailed instructions for calculating supportable discounts for lack of control and lack of marketability 
• Calculations Summary - A summary of all calculations provided on a single page in an easy-to-follow format
• Acquisition Roster - Listing of over 1,000 acquisitions of publicly-traded companies that occurred between 2007 and September 2011

Report Format: Adobe Portable Document Format (PDF); Adobe Reader required for viewing

Date of Most Recent Toolkit Update: 9/20/2011