In business valuation analysis, a Non-Controlling Interest connotes a situation where the shareholder interest in a business entity is small and does not grant significant voting rights to the owner. Non-controlling interest typically does not grant voting privileges nor the ability to change the policy and direction of the business. As a result, business valuation analysts apply a discount when valuing a non-controlling interest in a business. There is no universal standard on the levels of discount to apply to various levels of non-controlling interest. However, the size of discounts applied to non-controlling interest increases as the size of the non-controlling interest reduces. The extent of the discount applied by business valuators when valuing a non-controlling interest depends on the level of disadvantages associated with the shares in terms of how it limits the influence of the holder in major decisions in the company. For example, the discount applied to 5% shareholding may be different from that applied to 25% shareholding even though both may qualify as non- controlling shareholding in the business being valued.