Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Valuation of Dual Class Shares
The high-profile class action lawsuit between minority shareholders and Hollywood icon Jeffrey Katzenberg over the additional consideration being paid to him in the sale of DreamWorks to Comcast puts the spotlight on “dual class” companies. Dual class c ...
Misusing the Market Prices of High-Vote Shares When Estimating a Discount for Lack of Voting Rights
When analysts estimate a valuation discount for the lack of voting rights in the stock of a private company, they typically look to the public market. Many studies have compared the market prices of publicly traded high-vote shares with the market prices of publicly traded low-vote shares. Unfortunately, when the inputs into these studies are examined, the emperor has no clothes.
Reader Question: How Much Is a Discount for Lack of Voting Rights?
In response to a reader question, we put the BVResearch Pro platform to work to reveal what the studies, valuation textbooks, and court cases say about a discount for nonvoting stock—more than enough material to estimate and substantiate an opinion.