Fluid Measure and Disbursement: Valuation of a Closely-Held Firm

Artikel

There are about 24 million businesses in the United States, with something less than one-tenth of one percent actively traded. This case is hypothetical, but the valuation issues pertaining to many of those closely-held firms are real. The case illustrates an income statement adjustment, estimation of a required rate of return, application of discounts to an "as if actively traded” price, and valuation treatment of excess assets not needed in the operation of the firm. The desire for market data is clear, but for closely-held firms market data must be proxied by the best available information and applied to sometimes less than complete information pertaining to valuation issues for closely-held business. Some of these techniques are applied in the solution of the case.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Journal of Small Business Finance ; ISSN: 1057-2287 ; Volume: 4 ; Year: 1995 ; Issue: 2/3 ; Pages: 165-189 ; Greenwich, CT: JAI Press

Classification and Topics

• Classification: Management ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: Fluid Measure ; Disbursement ; Valuation ; Small Business ; Closely-Held

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dukes, William P.
• Event: Veröffentlichung
• (who): JAI Press
• (where): Greenwich, CT
• (when): 1995

Further information

• Handle: http://hdl.handle.net/10419/114689
• Last update: 10.03.2025, 11:44 AM CET