Do you take a discount for lack of marketability (DLOM) for a controlling interest in a private company? Some do, and some don't. There continues to be a debate over whether a 100% equity ownership interest in a privately held company is less liquid than the underlying publicly traded stock data upon which the value is calculated.
Learn more: BVWire will be attending ASA’s 2017 Advanced BV Conference in Houston October 7-10, and one session on our radar is Evidence of DLOMs for Controlling Interests, to be presented by Ronald DiMattia (Corporate Value Partners Inc.). He has found that empirical research related to merger arbitrage could be helpful in assessing a DLOM associated with controlling ownership interests. Will this settle the debate over this issue? We’ll see!
Please let us know
if you have any comments about this article or enhancements you would like to see.