IDEAS home Printed from
   My bibliography  Save this article

Fluid Measure and Disbursement: Valuation of a Closely-Held Firm


  • William P. Dukes

    (Texas Tech University)


There are about 24 million businesses in the United States, with something less than one-tenth of one percent actively traded. This case is hypothetical, but the valuation issues pertaining to many of those closely-held firms are real. The case illustrates an income statement adjustment, estimation of a required rate of return, application of discounts to an "as if actively traded” price, and valuation treatment of excess assets not needed in the operation of the firm. The desire for market data is clear, but for closely-held firms market data must be proxied by the best available information and applied to sometimes less than complete information pertaining to valuation issues for closely-held business. Some of these techniques are applied in the solution of the case.

Suggested Citation

  • William P. Dukes, 1995. "Fluid Measure and Disbursement: Valuation of a Closely-Held Firm," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 4(2), pages 165-189, Fall.
  • Handle: RePEc:pep:journl:v:4:y:1995:i:2:p:165-89

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Beaver, William & Manegold, James, 1975. "The Association between Market-Determined and Accounting-Determined Measures of Systematic Risk: Some Further Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 10(02), pages 231-284, June.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Fluid Measure; Disbursement; Valuation; Small Business; Closely-Held;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pep:journl:v:4:y:1995:i:2:p:165-89. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Craig Everett). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.