“A PRIMER ON DISTRESSED DEBT INVESTING,” MARK J. P. ANSON, THE JOUR...

6. “A Primer on Distressed Debt Investing,” Mark J. P. Anson, The Journal of Private

Equity (Institutional Investor, Summer 2002)

Purpose:

To test the candidate’s understanding of issues relating to investments in private equity and

distressed debt.

LOS: The candidate should be able to

3B. “Discounts for Lack of Marketability” (Study Session 8)

a) discuss the importance of marketability;

b) discuss the results of the studies of private stock transactions prior to public offerings;

c) discuss the transactional considerations encountered when attempting to liquidate a

controlling interest in a closely held company;

d) discuss the reasons for differences between private and public company acquisition

P/E multiples;

e) describe the factors that affect the discount for lack of marketability.