Inputs

BaseDiscountforfirmwith$10millionrevenue 25%
Revenues= 209
Sizeofblockas%ofstockoutstanding= 100%
PositiveorNegativeEarnings= 1

Output
IlliquidityDiscount 19.10%
Inputs
Values for Private company
Revenues 209
PositiveorNegativeEarnings= 1
Cash/Value 3%
Trading Volume/ Value 0%

Output
Illiquidity Discount = 11.78%
 Figure24.1:IlliquidityDiscounts:BaseDiscountof25%forprofitablefirmwith$10millioninrevenues

40.00%

35.00%

30.00%

25.00%
Discountas%ofValue

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

Profitablefirm Unprofitablefirm
Revenues Profitable firmUnprofitable 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%