Private Equity Flashcards
1
Q
Discount for lack of control (DLOC)
A
DLOC = 1 - [1 / (1 + control premium)]
2
Q
Total discount for valuing minority equity interest in private firm
A
Total discount = 1 - [(1-DLOC)(1-DLOM)]
Discount for lack of control (DLOC)
DLOC = 1 - [1 / (1 + control premium)]
Total discount for valuing minority equity interest in private firm
Total discount = 1 - [(1-DLOC)(1-DLOM)]