According to Business Valuation Resources, new analysis shows time needed to market and sell a privately held business is 211 days, up from 200 days in previous analysis.
Todd Nelson, Capstone Valuation Advisor, weighs in on these observations:
“There are many variables that impact the time it takes to complete a private company sale. Those factors include the quality of the cash flows generated by the entity, it’s size in terms of sales, the attractiveness of the market in which it operates, the industry in which it participates, and the current nature of the economy.
All factors must be considered when determining whether a discount for lack of marketability (DLOM) is warranted. Control factors also come in to play as most analysts would not apply a DLOM to the sale of a 100 percent interest.”