Bridging the gap between public and private firms

Description

Abstract: Transactions of public company shares can sometimes represent good benchmarks for appraisers valuing private businesses, but many privately held business owners wonder whether it’s even possible to compare small businesses with large, publicly traded corporations. While the two types of businesses differ significantly, experienced valuation professionals understand the differences — and how to account for them with well-thought-out, supportable adjustments. This article explains the distinctions between the two types of companies and how appraisers can use public market data as a resource to value even the smallest private company.