The size of the discount applied to a specific interest is dependent on many factors:
- Dividend capacity
- Has, can, will the investment/company pay dividends? - Probable holding period
- How long is the investment term, 3 to 5 years?
- When can it be sold
- Prospects for liquidity - Degree of control in the block of stock
- Control interest is more marketable than minority interest - Restrictions on transferability (right of first refusal)
- Company’s stock redemption policy
In short, how and when can I turn my investment into cash?
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