Full results of DLOM survey now available
BVR’s survey on methodology and practice for estimating a discount for lack of marketability (DLOM) garnered over 200 responses.
Ghaidarov Offers a New Framework for DLOM
Ghaidarov, who has published papers related to option price models for estimating a discount for lack of marketability (DLOM), presents a new concept for illiquidity discounts.
DLOM survey reveals methods of choice
The use of restricted stock studies remains the most cited methodology for quantifying a discount for lack of marketability (DLOM), according to the preliminary results of BVR’s 2021 DLOM survey.
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 ...
Conceptual Overview of the Integrated Theory
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. This first webinar in the three-part series sets the stage ...
BVU News and Trends September 2020
A monthly roundup of key developments of interest to business valuation experts.
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.
New version of ‘Stout Restricted Stock Study Companion Guide’ now available
The most widely used restricted stock transaction database for providing empirical support for a discount for lack of marketability (DLOM) is the Stout Restricted Stock Study (formerly FMV Opinions).
How much less is a minority share worth now?
HMRC changes have increased the difficulty of providing support for rates of return for illiquid and difficult-to-market minority shares.
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.
Journal of Business Valuation 2015 Edition
From the CBV Institute ...
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 ...
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 ...
BVU News and Trends January 2020
A monthly roundup of key developments of interest to business valuation experts.
BV data: Sometimes it just ‘is what it is’
Empirical data are the backbone of defensible business valuations, but there are strengths and weaknesses with all data.
BVU News and Trends October 2019
A monthly roundup of key developments of interest to business valuation experts.
Dig deeper into restricted stock studies for DLOM
A common approach to developing a discount for lack of marketability (DLOM) when using restricted stock studies is to simply list their averages and use those figures in the estimate.
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.
Vianello offers free e-book on empirical research regarding DLOM
“When I entered the valuation field, I quickly became very dissatisfied with the available means of estimating DLOM,” writes Marc Vianello (Vianello Forensic Consulting LLC).
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.
‘Benchmark average’ approach dominates for DLOM
The use of restricted stock studies is the most cited methodology for quantifying a discount for lack of marketability (DLOM), according to the results of our DLOM survey.
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.
BVU News and Trends October 2018
A monthly roundup of key developments of interest to business valuation experts.
Reminder: Take our DLOM survey
Our thanks to those who have responded so far to our survey designed to narrow down the methods most frequently used for determining a discount for lack of marketability (DLOM).
Find out what DLOM methods are used the most
By our count, there are almost 75 methods for estimating a discount for lack of marketability (DLOM), and more are in the works.
- 1
- 2 (current)
- 3
- 4
- 5