The most widely used restricted stock transaction database is the Stout Restricted Stock Study™ (formerly FMV Opinions), which is updated quarterly and contains 780-plus screened transactions with up to 60 data fields. It provides empirical support for a discount for lack of marketability (DLOM). The database includes the Stout Calculator that makes it easy to use Stout’s methodology and determine a DLOM driven by the financial characteristics of your subject company, as well as the volatility of the market. This is the preferred analysis as opposed to a simple listing of all the studies and their average discounts and then pulling a DLOM out of what may be perceived to be thin air.
New enhancements: After spending a good deal of time reviewing the methodology, Stout has made some enhancements, including a simplified adjustment methodology and more robust sample sizes for adjustments. Also, all transactions occurring at a premium are now excluded. All of these enhancements are embodied in the Calculator, which comes with the database. A free Companion Guide has also been updated and is available if you click here.
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