“The restricted stock illiquidity discounts in the Liquistat™ database are radically higher than those in comparable private placement studies,” says Espen Robak, CFA, President of Pluris Valuation Advisors (New York City). The average discount in the database is currently 30.7%, with a standard deviation of 16.5%.
Liquistat compiles its database from transactions listed with the Restricted Securities Trading Network (RSTN), with Pluris advisors adding analysis to calculate market-based valuations for restricted stock and warrants. “With more than 200 transactions, it is believed to be the largest database of restricted securities trades anywhere.” And it’s the only application of liquidity discounts to warrants and stock options.
For a free copy of Robak’s article, “Introducing Liquistat: A Completely New Way of Determining DLOM,” click here. And don’t miss Robak along with Ashok Abbot (W. Va. Univ. and Business Valuation, LLC,) and Barry Silbert (Restricted Stock Partners) in today’s telephone conference: “Valuation of Illiquid and Hard-to-Value Securities.” There’s still time to register; click here.
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