Local ownership rules may trigger a DLOM for business valuations in offshore locations, says James V. Andrews, senior managing director of IRR, a valuation firm based in the Cayman Islands. In a post in BVR’s LinkedIn group, he points out that in the Caymans there's a requirement for 60% local ownership in some cases. But only about half of the residents are Caymanian citizens, which limits the potential pool of investors. This is particularly true for businesses that are commonly foreign owned, such as tourist-related businesses. For the other industries, Caymanians are the likely investors if the level of investment is right. “In any event, one has to consider the relatively small population and the level of investment required to determine if a discount is warranted for a business that is operating locally in Cayman,” says Andrews.