Minority Interest Valuation Discounts
Definition
Minority interests typically 20-30% equity require discounts in DCF, CFMD, CFME, ABV methods, reducing realizable value in buyouts or disputes.
Key Findings
- Financial Impact: 20-40% discount on minority stake value (e.g., AUD 200,000-400,000 loss on AUD 1M stake)
- Frequency: During share buybacks, disputes, or acquisitions
- Root Cause: Lack of control and marketability in private company minority holdings
Why This Matters
The Pitch: Holding companies lose 20-40% value on minority interest sales due to discounts. Automated valuation tools using DCF/CFMD prevent this loss.
Affected Stakeholders
CEO, Company Secretary, Valuation Expert
Deep Analysis (Premium)
Financial Impact
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Current Workarounds
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Methodology & Sources
Data collected via OSINT from regulatory filings, industry audits, and verified case studies.
Related Business Risks
Oppressive Conduct Litigation Costs
Minority Interest Tax Compliance Costs
ASIC Late Lodgement Penalties
Director Duty Breach Fines
Invalid Resolution Opportunity Costs
Suboptimal Capital Allocation Fines
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