When investing in a business, the buyer considers how easily the interest can be converted to cash. However, transferring private business interests isn’t necessarily quick or easy — even if you own the entire company or a controlling block of the outstanding shares. Here’s a closer look at how business valuation professionals address the issue of marketability and how a state appellate court recently handled it for a divorce case involving a controlling business interest. What’s a discount for lack of marketability? In a business valuation context, “marketability” refers to the ability to quickly convert property to cash at minimal cost. While publicly traded stocks are readily marketable, interests in private companies typically require substantial time, cost and effort to sell. To the extent that public stock...