Minority Interest Crash Course in Accounting and Financial Statement Analysis, Second Edition Book
It adjusts market cap in EV calculations to include the full business value across both parent and subsidiary. Specifically, it represents the claims on assets and earnings by the non-controlling shareholders of the subsidiary. In summary, properly accounting for minority interest provides a clearer picture of economic reality and a more accurate view of financial positions/performance for consolidated businesses. Prepare thoroughly by doing a valuation analysis to know the strengths and limitations of your position within the what is minority…