The market price of stocks of companies that are traded publicly and in a similar line of business. The most appropriate method to use when valuing a closely held corporation is to address book value, liquidation value, and income capitalization methods. Liquidation value assumes that all debts will be paid after the assets of the business are sold. Solo practitioners typically take the position that, without them, there businesses have no value except for its tangible assets. Most courts do not agree with this position and include goodwill in the value.
Book value subtracts liabilities from the companies assets at their depreciated value.
This method ignores goodwill, however it is accepted by some courts. After the total value of all the stock is established, the interest of the minority stockholder is usually reduced by between 30 -50 percent. A separately owned close corporation exists when one spouse owns an interest in a closely held corporation prior to marriage. Although, increases in value from contributions of money or time, by one or both spouses is marital property. There are a number of methods for valuing goodwill.