News Category: discount for lack of marketability (DLOM)


NY fair value ruling deals blow to DLOM

The case featured experts whose professional backgrounds and valuation approaches could hardly be more dissimilar. Their value determinations were light-years apart. In trying to make sense of the conflicting testimony and achieve a plausible and fair result, the court decided it could not totally trust either valuation. Although it adopted the defense expert's valuation, it made two consequential changes to it. One was getting rid of the expert's admittedly high and insufficiently explained 35% discount for lack of marketability. Read more >>

New Jersey DLOM ruling inches ancient dissenting shareholder suit to conclusion

The parties' most recent fight focused on whether the prevailing expert's DCF analysis embedded a marketability discount to account for illiquidity. If not, the trial court had to decided what the appropriate DLOM rate was. The plaintiff-selling shareholder argued in favor of a zero DLOM, the defendants-buying shareholders presented an expert valuation that specified a 35% DLOM, based on the expert's use of a market approach. Read more >>

Key ruling on enterprise goodwill from South Carolina Supreme Court

Fair value calculation exposes gaps in court’s understanding of valuation

Poignant words from ‘Zelouf’ court on fair value appraisal and DLOM

DLOM alive and well in 'AriZona Beverages' fair value proceedings

In 'Richmond' Tax Court Opts for Net Asset Value Approach and Rejects 100% BICG Tax Discount—Why?

Categories