Do the companies included in the Valuation Advisors Lack of Marketability Discount Study make regular distributions?
Most of the companies in the Valuation Advisors’ Lack of Marketability Discount Study are C corporations, and therefore do not make distributions, or for that matter, pay dividends. Some companies were S Corporations that converted to C corporations, but only a few. The presumption is that they made standard S Corporation related distributions yearly, or possibly a one-time distribution to take out any built up AAA account balances prior to conversion.
Related Questions
- Does the Valuation Advisors Lack of Marketability Discount Study™ allow for earnings growth between the time of the "transaction" and the IPO?
- Do the companies included in the Valuation Advisors Lack of Marketability Discount Study make regular distributions?
- Does the Valuation Advisors Lack of Marketability Discount Study exclude or include insider pre-IPO transactions?