Pre-IPO Studies Endure to Retain Foothold in the DLOM Toolbox

Business Valuation UpdateVol. 26 No. 2
February 2020
discount for lack of marketability (DLOM)
pre-IPO, discount, discount for lack of marketability (DLOM)

Summary

Pre-IPO studies have withstood criticisms and court challenges to remain a viable method for developing a discount for lack of marketability (DLOM). Over a third (38%) of valuation experts use them, according to a survey. The article includes an interview with Brian Pearson of Valuation Advisors, a provider of the largest pre-IPO study.