Are all business valuation reports ultimately the same?
JKP: Absolutely not! Valuation reports vary from appraiser to appraiser and from firm to firm. We have seen a lot of variability in appraisal reports over the years and have occasionally made corrections to other firms’ reports that were, frankly, substandard. BW: Can you explain the difference between minority interest and control interest? JKP: A minority interest is an interest in a company that is non-controlling. For instance, if there are two owners in a company – one with 51% and another with 49% – then the 49% owner is deemed to have a minority interest because he or she presumably does not have voting control rights. In these situations a discount may be applied to the minority interest. A control interest is an interest in a company that is controlling. In this case, if there are two owners in a company – one with 51% and another with 49% – then the 51% owner is deemed to have a control interest because he or she presumably has voting control rights. A premium may be applied
