Inputs

Base Discount for firm with $ 10 millio 25%

Revenues= 18
Size of block as % of stock outstanding 100%
Positive or Negative Earnings = 1

Output
Illiquidity Discount 23.91%
Inputs
Values for Private company
Revenues 18
Positive or Negative Ear 1
Cash/Value 3%
Trading Volume/ Value 0%

Output
Illiquidity Discount = 12.32%
 Figure 24.1: Illiquidity Discounts: Base Discount of 25% for profitable firm with $ 10 million in
revenues
40.00%
Discount as % of Value

35.00%

30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
5 10 15 20 25 30 35 40 45 50 100 200 300 400 500 1000
Revenues
Profitable firm Unprofitable firm
Revenues Profitable fir Unprofitable firm
5 26.26% 34.21%
10 25% 33.15%
15 24.25% 32.52%
20 23.71% 32.07%
25 23.29% 31.72%
30 22.94% 31.42%
35 22.64% 31.17%
40 22.39% 30.96%
45 22.16% 30.77%
50 21.95% 30.59%
100 20.59% 29.45%
200 19.19% 28.27%
300 18.35% 27.57%
400 17.75% 27.06%
500 17.28% 26.67%
1000 15.79% 25.42%