Thoughts on Calculating DLOMs

BVResearch Pro
American Society of Appraisers Business Valuation Review™
Winter 2014 Volume 33, Issue 4 pp. 102-112
Dwight Grant, Ph.D.

Summary

In this article, we describe another method for calculating different discounts for lack of marketability (DLOMs) for each security in the capital structure based on its unique volatility. The primary merit of this method is that it requires a minimal change in appraiser practice. We also provide support for the use of incremental DLOMs when valuing securities based on a transaction in a non-marketable security.
Thoughts on Calculating DLOMs
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