FMV develops two-year equivalent discounts for DLOM Calculator

BVWireIssue #145-3
October 15, 2014

The FMV DLOM Calculator has been modified to render current restricted stock data meaningfully comparable to private companies. FMV has developed two-year equivalent discounts, which makes current restricted stock data (six-month holding period and six-month holding period with registration rights) meaningful in the determination of the appropriate discounts for lack of marketability (DLOM) for private companies.

More comparable: FMV has developed a solution to the holding period issue by successfully analyzing transactions with generally similar characteristics occurring in typical conditions and isolating the incremental discount adjustments—thus, developing the two-year equivalent discount. Valuation professionals are able to derive meaningful DLOMs utilizing up-to-date and relevant information and maintaining comparability to private companies.

Lance Hall and David Bertucci (both with FMV Opinions Inc.) provide a full explanation of the modification in the October issue of Business Valuation Update (subscription required). The FMV DLOM Calculator is available exclusively through BVR at

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