Estate of Jung v. Commissioner
The marketability issues of this case were in connection with the determination of the fair market value of the decedent’s 20.83% holdings of voting common stock of a closely held corporation that was family owned.
Dot.com discount not all marketability
I am writing regarding the article in the July 2000 issue of BVU on marketability as illustrated in dot.com IPOs. This interesting study observes that the median private placement price is a ...
2022 Johnson/Park DLOM study is now available
The Johnson/Park empirical method to estimate a discount for lack of marketability (DLOM) is one of the most popular methods business appraisers use for this purpose, according to a BVR survey.
2021 Johnson/Park DLOM study is now available
The Johnson/Park empirical method to estimate a discount for lack of marketability (DLOM) is one of the most popular methods business appraisers use for this purpose, according to a recent BVR survey.
2023 Johnson/Park DLOM study is now available
The Johnson/Park empirical method to estimate a discount for lack of marketability (DLOM) has been used in several tax court cases, including the first family limited partnership (FLP) case to go to trial.
The Value of Marketability - As Illustrated in Initial Public Offerings of Common Stock - Excel Spreadsheets
The term discount for lack of marketability is a general term in business valuation referring to a reduction in an equity interest's value for reasons relating to marketability and/or liquid ...
Deal and Market Data Details
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Details on the sale price of sold companies in the private and public company platforms offered by BVR.
BVR now offers the Johnson/Park DLOM studies
To estimate a discount for lack of marketability (DLOM), business appraisers typically look at the restricted stock studies and the IPO studies.
Why did marketability discount numbers change in 3rd edition?
I was looking at the Willamette Management Associates discount for marketability study that is detailed in the third edition of Valuing a Business (page 348). I note that your numbers have ...
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 ...
Quantitative Support for Discounts for Lack of Marketability
Copyright 1999 American Society of Appraisers. Reprinted with permission from Dec. 1999 Business Valuation Review. A common method for determining discounts for lack of marketability is to rely on a ...
Valuation Advisors Product Spec Sheet
Spec Sheets
$745/USD 1-year Valuation Advisors Lack of Marketability Discount Study Benefits of the Control Premium Study Search 18,700+ pre-IPO transactions across 450+ industries Get the most current pre-IPO data with monthly updates that provide the most timely information Easily calculate a discount for lack of marketability using pre-IPO data. Utilize a quarterly summary chart of median DLOMs by year and quarter for each of the included pre-IPO timeframes • Capture lack of marketability discount data with advanced search results that include statistics on count, range, mean, and median Includes both equity ...
DLOM support: the more the better
Two main approaches for estimating a discount for lack of marketability (DLOM) are restricted stock studies and pre-IPO studies.
Valuation Advisors Sample Reports
Valuation Advisors Sample Reports | Business Valuation Resources Search Valuation Advisors Lack of Marketability Discount Study Sample ReportsSubscribers to Valuation Advisors can access advanced searching and reporting functionality. Take a sneak peek at what subscribers can view:Sample Advanced Search Results Summary (PDF)Sample Transaction Report (PDF)
The five most common DLOM models, according to Laro
Clarificaton in response to BVWire article that quoted Judge Laro as having become “well-acquainted with the five models most commonly used to calculate marketability discount."
Liquidity discounts becoming more recognized
“Liquidity has the potential to be a more important factor in determining financial market prices than even risk and return,” according to Prof. Francis Longstaff.
Discount for Lack of Marketability: Do IPO Studies Tell Us Anything?
This article analyzes some of the criticisms made by analysts in connection with the use of IPO studies for the purpose of estimating discounts for lack of marketability applicable to equity transactions in private companies. A simple model is presented that shows that the discounts observed in such studies may underestimate the true marketability discount, as the price discount required by investors will fall with the likelihood of a successful IPO. The model suggests a ...
RSQC model helps cope with DLOM scrutiny
The estimation of a discount for lack of marketability (DLOM) is under increased scrutiny by users of valuation reports, the IRS, and others.
IPO surge adds to valuation resource coffers
Because of the Jumpstart Our Business Startups Act, there have been 25% more U.S. initial public offerings annually.
New name for popular FMV Restricted Stock Study™
The use of restricted stock studies is the most cited methodology for quantifying a discount for lack of marketability (DLOM).
How valuation experts estimate DLOM
Restricted stock studies and pre-IPO studies remain the most cited methodologies for quantifying a discount for lack of marketability (DLOM), according to the results of our DLOM survey.