Expand the following panels for additional search options.

BV News and Trends January 2025

A monthly roundup of key developments of interest to business valuation experts.

Understanding IPCPL Theory (Cost of Capital Virtual Conference)

The webinar will provide a comprehensive overview of implied private company pricing line (IPCPL) theory, empirical evidence, and application. IPCPL theory implies private capital market transaction costs represent the shadow price of liquidity risk in private capital markets, i.e., the price of liquidity risk were it traded explicitly in private capital markets. Such theory is well-grounded in valuation theory and the underlying asset pricing and financial economic theories. IPCPL theory has been empirically tested and ...

Stout warns against using simple benchmarks for DLOM

During a recent free BVR webinar, Patrick Polomsky, who is with Stout, where he maintains the Stout Restricted Study database, explained the ins and outs of the study and noted that the typical method analysts have used to estimate a discount for lack of marketability (DLOM) is not as comprehensive as it should be, that is, simply looking at the averages of the Stout study and/or other studies to estimate the DLOM.

Matter of Magarik v. Kraus USA, Inc. (Kraus III)

This is the full court opinion for Matter of Magarik v. Kraus USA, Inc., 2024 N.Y. App. Div. LEXIS 5239, 2024 NY Slip Op 04964 (October 9, 2024).

BV News and Trends September 2024

A monthly roundup of key developments of interest to business valuation experts.

Court OKs 10% DLOM on a 100% interest

In an Iowa divorce case, the couple owned a successful garden center and the husband’s expert applied a 10% discount for lack of marketability on the value.

Gregory Reveals What’s Going on With the IRS and Tax Valuations

At the recent New York State Society of CPAs’ Business Valuation and Litigation Services Conference, former IRS manager Michael Gregory (Michael Gregory Consulting) did a session on valuations for tax purposes and what’s been happening at the IRS. The article includes a chart on DLOM methods to consider for various types of entities and situations based on IRS feedback.

In re Baedke

There has been a long-running debate about whether a discount for lack of marketability is applicable to a 100% interest in a business. Here, the Iowa appellate court said, yes, there can be and offered prior Iowa case law to back its position. While the discount most likely represented a liquidity discount, it was nevertheless considered appropriate in Iowa.

Iowa Appellate Court Affirms Marketability Discount for a 100% Owned Business

There has been a long-running debate about whether a discount for lack of marketability is applicable to a 100% interest in a business. Here, the Iowa appellate court said, yes, there can be and offered prior Iowa case law to back its position. While the discount most likely represented a liquidity discount, it was nevertheless considered appropriate in Iowa.

Two BV Trends That Have Alarmed BVR’s ‘Power Panel’

A panel of thought leaders commented on two issues they say have raised some very loud alarm bells. One issue involves the methodology and analysis for estimating a discount for lack of marketability (DLOM) and the other issue concerns professional standards.

New platform for pre-IPO study for supporting a DLOM

Many valuation experts defend their discounts for lack of marketability (DLOM) using data from pre-IPO studies.

BV News and Trends June 2024

A monthly roundup of key developments of interest to business valuation experts.

In re FTX Trading

This case was the first of its kind to value certain specific cryptocurrencies and can serve as a tutorial for valuation professionals. It also had a good discussion of the option method of determining a DLOM.

Bankruptcy Court Determines Value of Certain Cryptocurrencies Held by Debtor FTX and Discusses Option Method for a DLOM

This case was the first of its kind to value certain specific cryptocurrencies and can serve as a tutorial for valuation professionals. It also had a good discussion of the option method of determining a DLOM.

Blockage and DLOM Discounts: Options Models to the Rescue

Learn to access real stock market data (with more than 40 million data points) and develop discount estimates specific to the valuation date, industry group, market value decile, and block size for the transaction all from your laptop or smartphone in a matter of minutes, not weeks. You don’t want to miss this webinar if you use DLOM or blockage discounts in your valuation work!

Today! Ashok Abbott on options models for DLOM

An emerging model to keep your eye on is the work of Dr. Ashok Abbott (West Virginia University), who has a calculator that estimates a discount for lack of marketability (DLOM) based on the analyst’s choice of comparable public companies.

Global BVU News and Trends May 2024

Business valuation news from a global perspective.

Power Panel: Trends and Issues in Business Valuation

The panel provides an overview of some of the hottest topics in the business valuation profession. Among the topics are: artificial intelligence; environmental, social, and governance (ESG); Department of Labor adequate compensation (ESOP) update; Daubert challenges; federal rules applicable to valuation/litigation experts; interesting case decisions/case law update; market multiples and trends in M discount for lack of marketability—trends and tools; lease accounting and business valuation; trending tax considerations; and cryptocurrency valuation issues. The Power Panel ...

Court opts not to split the difference in disparate valuations

Often, courts take the middle ground when faced with two disparate valuations, but, in an Ohio divorce case, the court did not do that.

BV News and Trends April 2024

A monthly roundup of key developments of interest to business valuation experts.

Which option-based methods are favored for DLOM?

The Finnerty average put model is the option-based method cited the most for estimating a discount for lack of marketability (DLOM), according to our recent survey.

Good deal of interest in new option-based DLOM calculator

We were happy to see the number of readers who were interested in trying out an online calculator for estimating a discount for lack of marketability (DLOM) we announced last issue.

Interested in more support for your DLOM?

There have been some rumblings in the business valuation profession about the validity of the traditional ways to estimate a discount for lack of marketability (DLOM).

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.

Quantifying DLOMs for Minority and Controlling Interests

The discount for lack of marketability is one of the largest and most important adjustments made in the valuation of a privately held business. It is crucial to understand that an investor purchases the privately held interest at a discount to increase the rate of return on the investment. This increased rate of return offsets the additional risk the lack of marketability of the investment causes. This webinar will discuss how to use this concept ...

1 - 25 of 675 results