The Quick Reference Guide to Business Valuation for Attorneys
By Sean R. Saari, Partner, Advisory Services
Investors who hold publicly traded securities have the luxury of knowing the value of their investment at any time. An internet connection and a few clicks of a mouse are all it takes to get an up-to-date stock quote. Of all U.S. companies, however, fewer than 1% are publicly traded, meaning that the vast majority of companies are privately held. Investors in privately held companies do not have such a readily available value for their ownership interests. How, then, are the values of privately held businesses?
In the latest edition of Cleveland Metropolitan Bar Journal, I discuss the answer to that question at a high level and offer a quick reference guide for dealing with cases that involve the valuation of privately held companies.
You can read the article here on pages 46-47.