Litigation-Related Valuation

CFA Level II Equities
#1

Common uses of equity valuation can be classified as transaction-related, compliance-related, and litigation-related. Of the three, litigation-related valuation has higher importance in private company valuation than in public company valuation.

Why litigation-related valuation has higher importance in private company valuation than in public company valuation?

Any Help?

#2

Probably because more private companies than public companies are partnerships and sole proprietorships.