A Minority Stock Assessment is an evaluation used to determine the value of the minority shares of stock in a closely-held business. To a third-party buyer seeking an economically justifiable investment, any interest in a closely-held business that is less than a majority is likely to be worth substantially less than its pro-rata value. The value per share will often be less than the average value per share of all of the outstanding stock in the enterprise. Therefore, the resale of minority interests in closely-held firms tends to be at substantial discounts.
First, the fair market value of your business is established through a formal business appraisal. Additional information is then obtained from a Data Request Survey. We can then determine the appropriate discount to be applied to the minority shares of stock based on the unique elements relative to the ownership, corporate, and operational control of your firm. Finally, we prepare a comprehensive written report enumerating our assessment and conclusion.
The Minority Stock Assessment fee is separate from the appraisal fee: $2,750.00 plus miscellaneous expenses.