Cox v. Cox
Court confirms appropriateness of applying a 50% marketability discount to the post-marital value of a steel business but not to its premarital valuation, citing the changes in the steel industry and company-specific factors.
BV News and Trends March 2022
A monthly roundup of key developments of interest to business valuation experts.
Latest methodology and practices for DLOM examined
A blue-ribbon panel of experts review the primary DLOM methods and reveal new survey data on which methods valuators rely on most.
Practical Applications of DLOM: Methods and Data (Part 1)
From rules of thumb to complex approaches, determining what methods to use can be as difficult as determining the actual discount for lack of marketability. Join Pasquale Rafanelli and prepare yourself for upcoming DLOM engagements. In Part 1, learn the pros and cons of each method and how to apply and support them. See these concepts applied in the case study-based Part 2.
Practical Applications of DLOM: Methods and Data (Part 2)
From rules of thumb to complex approaches, determining what methods to use can be as difficult as determining the actual discount for lack of marketability. Join Pasquale Rafanelli and prepare yourself for upcoming DLOM engagements. In Part 1, learn the pros and cons of each method and how to apply and support them. See these concepts applied in the case study-based Part 2. Attend either or, better yet, both.
Does block size affect DLOM
Has anyone ever published data indicating premiums or discounts for varying ownership percentages? For instance, has anyone produced the following chart for a privately held company?
Marketability discounts frequently a big money appraisal controversy
The applicability and/or magnitude of discounts for lack of marketability often are a large, if not the largest, money issue in a disputed business valuation. Lawyers should know enough about marketability discounts to make at least a preliminary judgment about their own and the opposing expert's justification as to the applicability or lack if it, and if applicable, justification as to the magnitude.
The oxymoron of "control, marketable"
When we use the terms "marketable" or "nonmarketable" in business appraisal, we typically are referring to minority interests. Yet, some people apply the expression "marketable" or "nonmarketable" to controlling interests, where the distinction seems meaningless.
Minority Share Gifts: Court Finds 30% Discount for Lack of Marketability
The parties stipulated to freely traded minority interest values, so the only issue was the discount for lack of marketability.
Users inspire update to the Stout DLOM calculator
Estimating a discount for lack of marketability (DLOM) has just become more robust with a new update to the Stout DLOM calculator.
A Test of DLOM Computational Models
The purpose of this article is to provide information concerning the viability of five mathematical models for use in determining the discount for lack of marketability. Based on a comparison to data from the FMV Restricted Stock Study, results from the Chaffe, Finnerty, and Meulbroek models result in discounts within the range of the data for one- and two-year periods, but results from the Longstaff and Tabak models do not. In addition, the Meulbroek model ...
BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends October 2023
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends October 2018
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends May 2023
A monthly roundup of key developments of interest to business valuation experts.
Tax Court Considers QMDM and Restricted Stock Studies in Determining Discount for Lack of Marketability
In November 1992, the Petitioners gifted shares of St. Edward Management Co. (the "Company") common stock to their children.
Young practitioners question traditional discount methodologies
“Outdated studies” and “emerging quantitative methods” are some reasons why young valuation practitioners are questioning the traditional methodologies for estimating discounts for lack of control and marketability (DLOC and DLOM).
BVU News and Trends May 2018
A monthly roundup of key developments of interest to business valuation experts.
Peracchio v. Commissioner
Issues were appropriate discount for lack of control and discount for lack of marketability to apply in valuing gifts of family limited partnership interests.
BV News and Trends May 2021
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
Valuation Advisors Demo Request
Valuation Advisors Demo Request | Business Valuation Resources Search Defend your discounts for lack of marketability with the most current data...Defend your discounts for lack of marketability (DLOM) with the most current data in the Valuation Advisors Lack of Marketability Discount Study. This robust tool enables you to reference actual DLOMs for companies with similar characteristics to your subject company. Search 18,700+ transactions, including 2,300+ non-U.S. deals covering 45 countriesGet continuous updates that provide the
Over 200 IPOs in 2007
As of December 14, 2007, there were 209 initial public offerings (IPOs) posted during the current calendar year.
2020 Johnson/Park DLOM study is now available
The Johnson/Park empirical method to estimate a discount for lack of marketability (DLOM) is the third most popular method business appraisers use for this purpose, according to a BVR survey.