The use of restricted stock studies is the most cited methodology for quantifying a discount for lack of marketability (DLOM). A 2016 BVR survey revealed that 76% of respondents say they use restricted stock studies and over half (56%) say they use the FMV Restricted Stock Study™.
Good news: Stout’s recent acquisition of FMV Opinions Inc. bodes well for this study as well as the FMV DLOM Calculator™, which have been renamed the Stout Restricted Stock Study™ and the Stout DLOM Calculator™. The combined expertise of these two firms will certainly strengthen the ongoing improvement of these tools.
In the meantime, subscribers will continue to have the ability to:
- Search 780 fully vetted restricted stock transactions;
- Filter transactions by profitability measures, revenue, block size, book value, total assets, and more;
- Access up to 60 data fields per transaction;
- Stay current with new, thoroughly updated transactions added quarterly;
- Convert discounts from one-year and six-month holding period transactions to a two-year equivalent holding period; and
- Access the Stout DLOM Calculator to simplify their process by creating exhibits and worksheets that can be inserted into valuation reports and be used to make their conclusion even more defensible.
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