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Free webinar on the Valuation Advisors Discount for Lack of Marketability Study this Friday

The Valuation Advisors Discount for Lack of Marketability Study just released a major additional dataset for transactions where pre-IPO timeframe is two years or greater.

Valuation Advisors Lack of Marketability Discount Study

The Valuation Advisors' Lack of Marketability Discount Study™ was developed by Brian Pearson of Valuation Advisors, LLC (VAL) and compares the initial public offering (IPO) stock price to pre-IPO common stock, common stock option, and convertible preferred stock prices. These market-based transactions demonstrate the lack of marketability discount afforded by the pre-IPO instruments because of their illiquidity when issued by a privately held company. On July 13, Brian Pearson joined BVR for a hands-on tour ...

Update to ‘Stout Restricted Stock Study Companion Guide’

The most widely used restricted stock transaction database for providing empirical support for a discount for lack of marketability (DLOM) is the Stout Restricted Stock Study (formerly FMV Opinions).

New version of ‘Stout Restricted Stock Study Companion Guide’ now available

The most widely used restricted stock transaction database for providing empirical support for a discount for lack of marketability (DLOM) is the Stout Restricted Stock Study (formerly FMV Opinions).

Updated ‘Stout Restricted Stock Study Companion Guide’ available

The most widely used restricted stock transaction database for providing empirical support for a discount for lack of marketability (DLOM) is the Stout Restricted Stock Study (formerly FMV Opinions).

Pre-IPO Revival: Up your DLOM Game in 2020

Pre-IPO data are very useful for valuators. Join Brian Pearson, creator of the Valuation Advisors Lack of Marketability Discount Study, to learn how to calculate discounts using different types of data (stock, options, and convertible preferred stock) and learn why the abundance of pre-IPO data is useful versus smaller samples of discount data. Brian will lead a discussion of prior criticisms of some sources of data and address those criticisms as they pertain to Valuation ...

2021 Discount For Lack of Marketability Study

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 Copyright ©2020 Munroe, Park & Johnson, Inc. Johnson/Park Empirical Method DISCOUNT FOR LACK OF MARKETABILITY STUDY 2 0 2 1 1 Copyright  2021 Munroe, Park & Johnson, Inc. All rights reserved. 2021 DISCOUNT FOR LACK OF MARKETABILITY STUDY Johnson/Park Empirical Method The 2021 Discount for Lack of Marketability Study provides the rate of return criteria that is needed for implementing the Johnson/Park Empirical Method for determining discounts for lack of marketability in the valuation of interests in privately held entities. The marketability discount quantifies the effect on value attributable to the inability ...

Major new updates to the two leading DLOM databases due soon

Update on the Willamettte Management Associates Pre-IPO Discount for Lack of Marketability Study

The concept of marketability deals with the liquidity of an assetùthat is, how quickly and certainly the asset can be con-verted into cash at the ownerÆs discretion. The markets for most assets value liquidity. Accordingly, market participants will extr ...

60% DLOM or more? Look at Valuation Advisors' new long pre-IPO timeframe data

Why Pre-IPO Studies Are Unsound in Concept and in Practice

This article explains why pre–initial public offering (IPO) studies are not a valid basis for determining marketability discounts. They are unsound in concept because the pre-IPO transactions and the subsequent IPO are priced at materially different dates and because the IPO price is not knowable at the earlier date. They are unsound in practice for several reasons, such as selectivity—the data include only companies that subsequently become publicly traded—and the fact that any pre-IPO discount ...

New case study for calculating DLOM using FMV Restricted Stock Study

Restricted stock discounts, 1991-95

We're very pleased that Bruce chose Business Valuation Update for the initial publication of this latest in a long series of restricted stock discount studies.I think it's particularly useful that he empirically identifies three factors that impact the magnitude of the discount for lack of marketability.

The value of marketability as illustrated in IPOs: May 1997 - December 2000

A critical aspect in determining the fair market value of closely held securities is the discount for lack of marketability. The term discount for lack of marketability is a general term in business v ...