HEC-Ecole de gestion de l'Université de Liège
HEC-Ecole de gestion de l'Université de Liège

L'impact de l'illiquidité sur la valeur d'une PME non cotée

Vanderstraeten, Julien ULiège
Promotor(s) : Streel, Alexandre ULiège
Date of defense : 23-Jun-2016/28-Jun-2016 • Permalink :
Title : L'impact de l'illiquidité sur la valeur d'une PME non cotée
Translated title : [en] The impact of illiquidity on the value of a non-listed SME
Author : Vanderstraeten, Julien ULiège
Date of defense  : 23-Jun-2016/28-Jun-2016
Advisor(s) : Streel, Alexandre ULiège
Committee's member(s) : Sougné, Danielle ULiège
Herman, Magali ULiège
Language : French
Number of pages : 98
Keywords : [en] Valuation
[en] Non-listed company
[en] Illiquidity discount
Discipline(s) : Business & economic sciences > Finance
Target public : Professionals of domain
Institution(s) : Université de Liège, Liège, Belgique
Degree: Master en sciences de gestion, à finalité spécialisée en Financial Analysis and Audit
Faculty: Master thesis of the HEC-Ecole de gestion de l'Université de Liège


[en] Valuation specialists are fully aware of the issue related to the illiquidity discount. Various studies and researches aimed at quantifying the effect of such a phenomenon have been performed in the United States. However, there is a lack of similar studies in the Belgian market.
The objective of this thesis is to examine the working practices used by Belgian professionals to estimate the effect of illiquidity in the context of non-listed SMEs. Our researches led to some findings. First, the confrontation of empirical studies performed in the United States and working practices used by Belgian specialists has proved complex. This is mainly explained by the fact that business valuation requires consideration of many factors. Therefore, the application of illiquidity discounts as reflected in these studies is not justifiable from an economic point of view. Second, a variety of approaches has been observed among the practitioners interviewed. Some prefer to rely on internal standards, while others tend to rely on their professional judgment. Furthermore, some specialists combine the above two approaches. These various ways of proceeding led to variable discounts.
The study results indicate that the determination of the illiquidity discount is imbued with subjectivity in the sense that there is no absolute truth. Therefore, the discount applied by a practitioner must invariably result from a detailed and reasoned analysis which allows him to justify its reasoning in a coherent way.
Finally, using different theoretical and empirical data, we estimated that the illiquidity discount applied in Belgium ranges between 20 and 30 %. This observation leads us to the conclusion that the illiquidity has a significant impact on the value of a non-listed company.



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  • Vanderstraeten, Julien ULiège Université de Liège > Master sc. gest., fin. spéc. fin. analysis & aud (ex 2e ma.)


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