Do you apply an illiquidity discount when you acquire 100% of a public company?
Typically, we apply an illiquidity discount in private company valuations to reflect the difficulty in disposing your stake in a private company later on due to the pool of smaller buyers. Would we also apply an illiquidity discount in a 100% stake acquisition of a public company?
After all, the public company becomes private...unless the buyer intends to list it again sometime in the future...Would appreciate any thoughts on this.
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