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 www.bvmarketdata.com/.
Please let us know
if you have any comments about this article or enhancements you would like to see.