How to Use the Latest DLOM Study for the Johnson/Park Empirical Method

Business Valuation UpdateVol. 29 No. 1
January 2023
discount for lack of marketability (DLOM)
discount for lack of marketability (DLOM), discounts & premiums, marketability


An example of how to apply the Johnson/Park empirical method, which is based on the fundamental concept of risk and reward. The annual study serves as a basis to determine how much of an increase in the rate of return is required to compensate investors for the lack of marketability of a subject interest.