Investors who hold publicly traded securities have the luxury of knowing the value of their investment at any time. An internet connection and a few clicks of a mouse are all it takes to get an up-to-date stock quote. Of all U.S. companies, however, fewer than 1% are publicly traded, meaning that the vast majority of companies are privately held. Investors in privately held companies do not have such a readily available value for their ownership interests. How, then, are the values of privately held businesses?

In the latest edition of Cleveland Metropolitan Bar Journal, I discuss the answer to that question at a high level and offer a quick reference guide for dealing with cases that involve the valuation of privately held companies.

You can read the article here on pages 46-47.

Do you have questions about business valuations for privately held companies, or other business valuation issues? Please contact Sean Saari,CPA/ABV/CVA/MBA , at 440-449-6800 or ssaari@skodaminotti.com.

Valuation Considerations When Buying or Selling a Business - Part 2