Corresponds to a percentage deducted from the market value due to the volume of offers put up for sale when the market needs a longer period to absorb all sales.
This definition distinguishes “blockage discount” from “lack of marketability”, as in the former there is a market to absorb offers and in the latter there is no such consumer market.
The value of this discount can be calculated by the financial cost resulting from the waiting time for the sale of assets, considering the historical average volume of sales and the absorption capacity by the market.
The discount rate must consider the interest of a financial advance with the risk that reflects the nature of the transaction.
The financial cost of this operation corresponds to the minimum discount that a conscientious investor requires to carry out the operation.