Open AccessValuation Of Closely Held Stock
Author(s) -
Martha Sadler Lilly
Publication year - 2011
Publication title -
journal of applied business research
Language(s) - English
Resource type - Journals
eISSN - 2157-8834
pISSN - 0892-7626
DOI - 10.19030/jabr.v6i3.6285
Subject(s) - goodwill , valuation (finance) , dividend , book value , business , valuation effects , net asset value , market value , stock (firearms) , intangible asset , business valuation , actuarial science , economics , accounting , financial economics , finance , earnings , mechanical engineering , engineering
Valuation of closely held corporate stock may rest upon several methodologies: restrictive agreements, earning capacity, dividend paying capacity, book or net asset value, goodwill and other intangible assets, as well as minority and controlling interests. Rev. Rul. 59-60 provides guidelines for valuation in the event of few or no market quotations and no restrictive agreements. Various cases have focused on critical factors in the valuation process with little guidance from the courts as to weight or value of such factors.