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Estimating the Discount for a Minority Stake in a Private Business
  • Estimating the Discount for a Minority Stake in a Private Business
Originally published: 12/07/2016 10:54
Publication number: ELQ-76744-1
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Estimating the Discount for a Minority Stake in a Private Business

This model can be used to estimate the discounts for a minority stake in a private business

Prof. Aswath Damodaranby Prof. Aswath Damodaran
Professor at NYU Stern School of BusinessFollow 1,092
NYU Stern School of Businesswith NYU Stern School of Business
An Education in PossibleFollow 62
2 reviews586 views|Start the discussion!|Bookmark download for free
investmentfinancediscountmanagementprivate businessminority stake
Description
The user must define the following inputs:
- Optimal value for equity
- Status quo value for equity
- Majority stake
- Minority stake being valued
- Value of majority stake
- Value of minority stake

Note: this model is being shared with the authorization of Professor Aswath Damodaran from NYU Stern Business School

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Further information

Outputs:
- Minority discount (in percent)


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