digimon7068
New member
only if you value the company at pennies on the dollar.![]()
if we're talking about a non-controlling ownership interest (i.e., 50% or less) then, that's usually exactly what happens...in addition to a marketability discount, there is also a discount for lack of control...but, like i said before, if you have a good shareholder's agreement, it will usually have a section that deals with the how's and why's of business succession...it may even provide a formula by which the value is to be calculated.