Note on Valuing Control and Liquidity in Family and Closely Held Firms

Posted: 21 May 2009

See all articles by Belen Villalonga

Belen Villalonga

New York University (NYU) - Leonard N. Stern School of Business

Date Written: February 23, 2009

Abstract

Most companies around the world are family-controlled and/or closely held. The need to value these companies routinely arises in practice for a variety of reasons, e.g ., to buy out minority shareholders; for gift and estate tax purposes; to tie executive compensation to firm performance; to raise outside capital; or to sell the company outright. However, these companies present certain unique characteristics that can make standard valuation methods inappropriate for them.

Suggested Citation

Villalonga, Belen, Note on Valuing Control and Liquidity in Family and Closely Held Firms (February 23, 2009). HBS Case No. 209-104, Harvard Business School Finance Unit, Available at SSRN: https://ssrn.com/abstract=1407543

Belen Villalonga (Contact Author)

New York University (NYU) - Leonard N. Stern School of Business ( email )

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