The Willamette Management Associates Discount for Lack of Marketability Study for Estate Planning/Estate Tax Valuations
liquid as the otherwise comparable common stock of a pub- The valuation of closely held companies or securities licly traded company. The closely held company stock does is often a controversial issue in estate tax matters. The not have the same degre ...
Update on the Willamettte Management Associates Pre-IPO Discount for Lack of Marketability Study for the Period 1998 Through 2002
The concept of investment marketability relates to the liquidi-ty of an asset, property, or business interestùthat is, how quickly and certainly it can be converted into cash at the ownerÆs discretion. Investors value liquidity. That is, rational invest ...
Weinberg v. Commissioner: Good law, bad economics, or both?
Lawyers often comment that good cases make bad law. As an economist, I have a similar comment: good law often comes from bad economics. By definition, a judge’s opinion is good law.
2023 Stout restricted stock study guide now available
The 2023 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
Free updated guide to the Stout restricted stock study
The 2023 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
A Current View of the Restricted Stock Studies and Restricted Stock Discounts
Although there is relevant evidence in some restricted stock studies that can be helpful for marketability discount determinations, comparisons with average discount observations from these studies do not provide a meaningful methodology to estimate marketability discounts. We conclude this despite the fact that too many valuation analysts continue to rely on simplistic comparisons with averages of restricted stock discounts from dated studies in their marketability discount determinations.
Stout updates its restricted stock study companion guide
The 2022 edition of the “Stout Restricted Stock Study Companion Guide” is now available, and it reflects updated tables and graphs that contain new transactions.
Pre-IPO discounts useful in a variety of valuation settings
Brian Pearson discussed a major addition to the Valuation Advisors Lack of Marketability Discount Study ...
2000 marketability discounts as reflected in initial public offerings
This interview by Alina Niculita is based on the Valuation Advisors Study of pre-IPO transactions for the year 2000. The complete article describing the study is available on BVLibrary.com ...
This Short Paragraph Can Bolster the DLOM Section in Your Next Report
Are you using a simple “benchmark average approach” for your analysis of a discount for lack of marketability (DLOM)? That type of analysis may have passed muster years ago, but times have changed.
Do Not Be Afraid to Take Much Higher Discounts During the Recession
The latest 2008 restricted stock data provide concrete proof that the discounts for lack of marketability have never been higher. By tying the VIX—the ticker symbol for the Chicago Board Options Exchange Volatility Index, a popular measure of the implied ...
Demystifying the Complex World of Discounts for Lack of Marketability (Part 1)
Please note: This is a rebroadcast. 25%? 35%? 45%? What’s the deal with discounts for lack of marketability? Pasquale Rafanelli dives into what DLOMs are, when they should be applied, and how to apply them. Learn about the different types of approaches and methods that valuation experts can use to quantify the DLOM, along with practical pros and cons of each approach and method. This session focuses on benchmark study approaches and security-based approaches. Please note ...
Demystifying the Complex World of Discounts for Lack of Marketability
25%? 35%? 45%? What's the deal with discounts for lack of marketability? Pasquale Rafanelli dives into what DLOMs are, when they should be applied, and how to apply them. Learn about the different types of approaches and methods that valuation experts can use to quantify the DLOM, along with practical pros and cons of each approach and method.
Stout updates Restricted Stock Study and Calculator
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.
Demystifying the Complex World of Discounts for Lack of Marketability (Part 2)
This is part 2 of the DLOM webinar from 2/12/2020. 25%? 35%? 45%? What’s the deal with discounts for lack of marketability? Pasquale Rafanelli dives into what DLOMs are, when they should be applied, and how to apply them. Learn about the different types of approaches and methods that valuation experts can use to quantify the DLOM, along with practical pros and cons of each approach and method. Part 2 discusses the analytical approaches and ...
Backlog of Willing Buyers Offsets Marketability Discount
The primary issue in this estate tax matter is the fair market value of 12,889 shares of Savings Bank of Mendocino County (Savings) stock, and 500 shares of Bank of Willits (Willits) stock, owned by decedent on the date of his death.
Mandelbaum v. Commissioner
At issue is the amount of discount for lack of marketability that should be applied to determine the fair market value of certain shares of stock owned by some or all of petitioners.
Estate of Branson v. Commissioner of Internal Revenue
At issue is the fair market value of decendent's stock acquisitions.
Valuation Advisors Spec Sheet
Spec Sheets
Defend your discounts for lack of marketability with the most current data in the Valuation Advisors Lack of Marketability Discount Study. This robust, online database, used by the top 4 accounting firms, includes pre-IPO transactions.
Court Uses Raw Data From Bajaj Study to Determine DLOM
The only issue in this case was the fair market value of gifted family limited partnership (FLP) interests.
Restricted stock discounts decline as result of 1-year holding period
This article addresses the changes in the marketplace for restricted securities that have occurred since 1990 and the impact that those changes have had on the overall level of discounts for lack of marketability for these securities.
Lappo v. Commissioner
The issue for decision is the fair market value of interests in a family limited partnership that petitioner transferred in 1996.
Little-known feature of the VA pre-IPO study
Did you know that the Valuation Advisors Lack of Marketability Pre-IPO Discount Study also contains convertible preferred stock (CPS) transactions?
Janda v. Commissioner
In November 1992, the Petitioners gifted shares of St. Edward Management Company (the "Company") common stock to their children. Each gift represented approximately 5.3% of the outstanding shares of common stock. St. Edward Management Co. owned 94.6% of the common stock of the Bank of St. Edward (the Bank), a bank located in a small agricultural community in Nebraska.