New updates to the FMV Restricted Stock Study

BVWireIssue #83-2
August 12, 2009

The FMV Restricted Stock Study™ has just been updated with nearly 90 new restricted stock transactions. With over 60 data points, The FMV Restricted Stock Study is well-suited for the Comparative Analysis of Restricted Stock approach (CARS) to determine discounts for lack of marketability. To ensure the data is of the highest quality, FMV Opinions employs a comprehensive screening process that eliminates approximately 95% of all restricted stock placements.  Primary screening criteria include:

  • Ensuring the stock was issued at arm’s length and not to an affiliate of the company in connection with a merger or acquisition, in exchange for services, or in connection with any other transaction that could cast doubt on the fair market value of the stock.
  • Rejecting transactions that are not “plain vanilla.”
  • Confirming the buyer and seller had no special contractual arrangements that might affect the buyers’ upside or downside in the deal.
  • Verifying the stock was not registered, and became fully marketable either prior to the transaction or within 30 days after the transaction.

To learn more, visit The FMV Restricted Stock Study.

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