Restricted Stock Studies That Back Up the DLOM
One of the most convincing types of evidence that supports the concept of a discount for lack of marketability (DLOM) is found in studies of restricted stock. Not only do these studies establish the existence of DLOMs, but they also reveal the factors tha ...
Tax Court displeased with all experts’ DLOC and DLOM analyses
The primary issues in this gift tax case were the appropriate discounts for lack of control and lack of marketability to apply to gifted and sold interests of a family limited partnership.
Letter to the Editor
Letter to the Editor I read the article Regression Analysis and Discounts for Lack of Marketability (BVR, Spring 2011, Vol. 30, No. 1) and found it relevant, well written, and generally interesting given the importance of discounts for lack of marketability in much of the appraisal work that we as appraisers do. I had some follow up questions/comments regarding this study and forwarded them on to the authors. The questions/comments that I had were ...
Preview of the September 2020 issue of Business Valuation Update
Here’s what you’ll see.
Lessons from Countrywide Financial—Finding the liquidity ‘sweet spot’
When Countrywide Financial filed its Form 10-Q with the SEC earlier this month, the company got hammered on Wall Street.
Tax Court Rejects Pre-IPO Studies, Finds DLOM Accounts for More Than Illiquidity
Petitioners Charles T. and Mary S. McCord gifted interests in McCord Interests Ltd. LLP (MIL) to their four children, trusts for the benefit of the children, and two charitable organizations by way of assignment agreements.
Valuation Advisors lack of marketability study results for ‘03 show upward trend
Slightly more IPO’s; slightly higher discounts ...
Estate of Webster E. Kelley v. CIR
The U.S. Tax Court determined the appropriate lack of marketability and minority interest discounts to apply to an interest in a family limited liability partnership holding cash and certificates of deposit. The minority discount was based on the arithme ...
How to Quantify and Support Your DLOM Using Rates of Return
Identifying, quantifying, and defending discounts for lack of marketability (DLOMs) has, is, and will remain a ubiquitous challenge in the business appraisal process. In this webinar, Part 2 of BVR's Advanced Webinar Series on Discounts for Lack of Marketability, expert appraiser Bruce Johnson explains how evidence gathered from rates of return can be utilized to arrive at a sound and defensible DLOM. Through an examination of relevant case law, available resources, and case studies, Johnson ...
Market Volatility and Its Impact on the Valuation Advisors Pre-IPO Database
The recent stock market volatility has ripple effects on pre-IPO studies, which are used to estimate a discount for lack of marketability (DLOM).
Current Controversies Regarding Discount For Lack Of Marketability Analyses
I n s i g h t s CURRENT CONTROVERSIES REGARDING DISCOUNT FOR LACK OF MARKETABILITY ANALYSES Authored by: Rotkowski, Aaron Co-Authored by: Cobb, Scott 11/1/2007 by Willamette Management & Associates Thank you for visiting www.BVLibrary.com and downloading this article. Please note this article is copyrighted and cannot be reproduced or distributed without written consent. Please contact Business Valuation Resources, LLC to inquire about permission to reprint. Phone: (888) 287-8258 or (503) 291-7963 ext.
Estate of Kelley v. Commissioner
In April 1999, Webster Kelley and his daughter and son-in-law ("the Loudens") formed Kelley-Louden Business Properties, LLC (KLBP LLC), and Kelley-Louden, Ltd., a family limited partnership (KLLP).
The demise of the IPO market?
In each of the years 1991 through and including 1997, there were more than 150 small IPOs (those that raised less than $25 million), and three years with more than 300 small IPOs.
Criticisms of pre-IPO data addressed in free webinar today
A valuation expert recently told us that, in an engagement he just completed, he did not use any of the pre-IPO studies in developing a discount for lack of marketability (DLOM).
Valuation Advisors FAQs
Valuation Advisors FAQs | Business Valuation Resources Search Valuation Advisors Lack of Marketability Discount Study Frequently Asked Questions (FAQs) Thank you for visiting the FAQ page for Valuation Advisors Lack of Marketability Discount Study. If you're unable to find the answer you are looking for, please contact us at 1-503-479-8200 or customerservice@bvresources.com and we are happy to help.Q:What is the legend for Valuation Advisors Lack of Marketability Discount Study data?A: ReportsExcel FormatDefinitionPre-IPO TimeframePreIPOTransactionTimeframeIPO date -
Estate of Green v. Commissioner
DLOM supported by restricted stock studies upheld while neither expert's minority interest discounts are upheld for lack of supporting analysis (therefore higher discount used).
The 2002 AICPA National BV Conference brings lively debates,
Conference CoverageClick here for full conference presentation (Shannon Pratt) Point/Counterpoint: How Large are Discounts for Lack of Marketability? Shannon P. Pratt Willamette Management AssociatesPortland, Ore. Mukesh BajajLECG, LLCEmeryville, Calif. Our editor-in-chief presented empirical evidence of marketability discounts in the form of results from the pre-IPO studies and the restricted stock studies. The U.S. Tax Court has tended to understate discounts for lack of marketability for most private company minority interests ...
The District Court Considers The Application Of Valuation Discounts In Estate Of Temple V. United States
I n s i g h t s THE DISTRICT COURT CONSIDERS THE APPLICATION OF VALUATION DISCOUNTS IN ESTATE OF TEMPLE V. UNITED STATES Authored by: Daddio, Paul 11/1/2007 by Willamette Management & Associates Thank you for visiting www.BVLibrary.com and downloading this article. Please note this article is copyrighted and cannot be reproduced or distributed without written consent. Please contact Business Valuation Resources, LLC to inquire about permission to reprint. Phone: (888) 287-8258 or ...
The Use Of Theoretical Models To Estimate The Discount For Lack Of Marketability
I n s i g h t s THE USE OF THEORETICAL MODELS TO ESTIMATE THE DISCOUNT FOR LACK OF MARKETABILITY Authored by: Lance, Travis 11/1/2007 by Willamette Management & Associates Thank you for visiting www.BVLibrary.com and downloading this article. Please note this article is copyrighted and cannot be reproduced or distributed without written consent. Please contact Business Valuation Resources, LLC to inquire about permission to reprint. Phone: (888) 287-8258 or (503) 291-7963 ext.
Intangible Asset Valuation in Health Care
Click here to down the PowerPoint presentation. Click here to download the PDF version of supplemental material to this presentation. It contains charts and tables omitted in this text only version. BUSINESS VALUATION WHITE PAPER MARKET APPROACH TO VALUATION OF RESTRICTIVE AGREEMENTS IN HEALTH CARE Prepared By HEALTH CAPITAL ADVISORS INC. April 23, 2001 EXECUTIVE SUMMARY This business valuation white paper was created to stimulate thinking and analysis regarding business combinations in the ...
The debate on discounts for lack of marketability (DLOM) continues
Last week, the BVWire™ included a follow-up to a Letter to the Editor authored by Ronald Seaman, FASA, of Tampa, Florida’s Southland Business Group.
New updates to critical sector of the U.S. economy
Small businesses drive the U.S. economy: They now account for 99.7% of all businesses and employ 57.4 million Americans, according to the latest statistical report from the SBA.
Free webinar: the new FMV DLOM Calculator
By the end of the week, BVR and FMV Opinions will introduce The FMV DLOM Calculator at BVMarketData.com.
No empirical basis for S corp premium in control transactions
Josh Angell has just posted a new article, “Empirical Research Generally Does Not Support S Corp Premium in Control Transactions.”
Preview of the September issue of Business Valuation Update
Here’s what you’ll see ...