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Advanced search results from the Valuation Advisors Lack of Marketability Discount Study. Includes search criteria, transaction summary, and data on the transactions such as SIC code, pre-IPO timeframe, transaction date, marketability discount, and more.
Updated Data in Largest Pre-IPO Study Reveal High Discounts
New pre-IPO data for the first quarter of 2021 has been added to the Valuation Advisors Lack of Marketability Discount Study, which is the largest study of its kind. The use of pre-IPO data is a widely used and accepted method for estimating a discount for lack of marketability (DLOM).
Yet Another Discount for Lack of Marketability Study
Summer 1997 Volume 16, Issue 2 pp. 70-106 ...
Valuation Advisors' DLOM Study™ now contains over 300 convertible preferred stock transactions
Brian Pearson (Valuation Advisors LLC), developer of the Valuation Advisors' Lack of Marketability Discount Study, updated listeners on his pre-IPO database last week in a BVR webinar.
Pre-IPO Study from Willamette Management Associates shows higher DLOM figures post dot.com boom
Willamette Management Associates’ Discount for Lack of Marketability Study for Marital Dissolution Valuations, Robert F. Reilly, American Journal of Family Law, Spring 2005, pp. 44-51.
Valuation Advisors Sample Transaction Report
Sample Reports
Sample transaction report from the Valuation Advisors Lack of Marketability Discount Study. Includes transaction data such as pre-IPO timeframe, transaction date, transaction price per share, etc.
Latest Study Available for the Empirical Method for Determining DLOM
The 2020 Discount for Lack of Marketability (DLOM) Study, recently released by Partnership Profiles, offers objective rate of return measures to implement the Johnson/Park empirical method. This method uses three approaches to measure the increase in return required to compensate investors for the lack of marketability of a subject interest.
Estate of Smith v. Commissioner
At issue is the value of Smith's shares of stock in two companies, Jones Farm Inc., and First National Bank of Waverly, as of her death.
For the first time: Valuation Advisors adds foreign transactions
Valuation Advisors Lack of Marketability Discount Study has added 867 new deals to the database, including—for the first time—757 international transactions from 26 countries.
Court Accepts Taxpayer's 76% Discount on Farm Corporation
The estate in this case held minority interests in two companies: Jones Farm Inc. (JFI) (33% ownership of common stock) and in the First National Bank of Waverly (FNBW) (12% of common stock).
Expert dubbed "unpersuasive" rebuts Judge Laro's rejection
I have reviewed the write up of Estate of Kaufman in the May issue of your newsletter, and I am very concerned that it unfairly portrays me as having not done a credible valuation because it takes Judge Laro's criticisms of my report at face value.
DLOM is Valuation-Date Specific, New Study on LEAPS Put Options Shows
The risk of loss in value over time is a major component of the discount for lack of marketability. The risk can be measured by the cost of publicly traded, long-term put options (LEAPS). Our new study, Minimum Marketability Discounts–4th Edition: A Study ...
Introducing the Rudich/Jaroudi BIZCOMPS DLOM Study
The authors do an analysis of the BIZOMPS database of sales of small private companies to uncover an imbedded discount for lack of marketability (DLOM) in a specific industry. The authors would like feedback on this study and methodology.
New ‘Court Cases Method’ for DLOM Points Up a Conundrum
A new study analyzes court cases to determine a more legally defensible discount for lack of marketability (DLOM). But should business valuers look to court cases for “good” valuations?
SRO Crowd Sees Latest Update to Leading Pre-IPO Study
The largest audience for a BVR webinar in recent memory watched as Brian Pearson put the Valuation Advisors Lack of Marketability Discount Study through its paces. Pearson, the creator of the study, discussed new data added in 2019, misconceptions and criticisms of pre-IPO data, and uses for the data that extend beyond estimating a DLOM.
2021 DLOM Study Is Out Now
The 2021 Discount for Lack of Marketability Study provides objective rate of return measures to implement the Johnson/Park empirical method for determining a discount for lack of marketability (DLOM) for the valuation of interests in privately held corporations and partnerships. This report instantly provides you with the most current DLOM rate of return information including a thorough explanation and example on how to apply these data.
Estate of Deputy v. Commissioner
Issue was the fair market value of a 19.99% interest of stock owned by an FLP, and court discussed negative industry risk premium and unique matrix for determining marketability discount.
Tax Court Accepts Negative Industry Risk Premium and Unique Combined Discount Matrix
The decedent, Helen Deputy, formed a family limited partnership comprised of 99% of a limited partnership interest retained by Deputy and two 0.5% general partnership interests, one held by Deputy and one held by her son.
Pre-IPO Studies Endure to Retain Foothold in the DLOM Toolbox
Pre-IPO studies have withstood criticisms and court challenges to remain a viable method for developing a discount for lack of marketability (DLOM). Over a third (38%) of valuation experts use them, according to a survey. The article includes an interview with Brian Pearson of Valuation Advisors, a provider of the largest pre-IPO study.
Valuing Shareholder Cash Flows
The integrated theory of business valuation provides a conceptual framework for disciplined analysis of valuation questions. Too often, valuation analysts are tempted to view individual components of a valuation assignment on a piecemeal basis. Adhering to the integrated theory helps valuation analysts develop base valuation conclusions, discounts, and premiums that are rooted in a shared perspective of the subject company and the subject ownership interest. In the first webinar of the three-part series, Chris Mercer ...
Quantifying marketability discounts
I am in the process of completing my demonstration reports for my CBA. I used a 30% LOM discount after deriving a value for a closely held, small business using the Ibbotson build up method.
BVU News and Trends September 2020
A monthly roundup of key developments of interest to business valuation experts.