top of page


The percentage owned of a business has a large impact on the value. A controlling interest is typically worth more, often a lot more, than a non-controlling or minority interest. A non-controlling interest does not have the ability to sell underlying business assets nor the ability to change dividends or other compensation. The business appraiser must determine if a discount for lack of control is applicable, and if so, the magnitude of the discount.


A business interest is typically considered marketable if it can be converted to cash in three days. For example, 100 shares of IBM common stock is marketable. A controlling interest in a small private company is considered non-marketable. A non-controlling interest in a small private company has an even higher lack of marketability. As part of the appraisal process, the appraiser must determine the appropriate discount for lack of marketability that should be applied to a specific business ownership interest.

bottom of page