Discounts & Premiums

Minority ownership is one of the most common – and most hotly debated – aspects of business valuation.  A lack of control does not mean a lack of need for empirical and expert conclusions of value.  BVR has what you need for ownership totaling less than 50%.

Guides & Books

A Consensus View: Q&A Guide to Financial Valuation 2016 edition

March 2016

In A Consensus View Q&A Guide to Business Valuation, Jim Hitchner, Shannon Pratt, and Jay Fishman answer over 150 of the most important business valuation questions they’ve been asked over the years. Each year, new chapters will be added and existing chapters will be updated.  Learn more >>

Business Valuation Yearbook 2016

February 2016

Keep up with business valuation’s most innovative approaches and techniques, new court decisions, and regulatory and professional standards updates. BVR has you covered with the Business Valuation Update Yearbook 2016. This newest edition from the publishers of Business Valuation Update covers the year’s most groundbreaking and thought-provoking advancements Learn more >>

BVR Legal and Court Case Yearbook 2016

February 2016

The BVR Legal and Court Case Yearbook 2016 is essential for business appraisers and attorneys who want to stay ahead of their peers on the most important legal issues confronting business valuation. With in-depth analysis from BVR’s legal team, the lessons learned in this book help appraisers come to better and more defensible valuation conclusions. Learn more >>

Update on Control Premiums: What the Experts Say (PDF)

May 2015

BVR’s data-rich special report "Update on Control Premiums: What the Experts Say," presents both qualitative commentaries and case studies from numerous experts who address these issues. It is includes all the necessary quantitative considerations along with coverage of the controversies about the concepts and data, presenting all sides of the argument. Learn more >>

Business Valuation Update Yearbook 2015

February 2015

BVR has you covered with the latest news in the business valuation profession! Get your Business Valuation Update Yearbook 2015 now to stay up to date with the most innovative approaches and techniques, leading conferences, new court decisions and changes in regulations and standards in the profession with on-the-ground reporting from valuation experts, thought-leaders and the BVR editorial team. Learn more >>

BVR Legal and Court Case Yearbook 2015

February 2015

The BVR Legal and Court Case Yearbook 2015 is essential for business valuation professionals and attorneys to stay current on the most important legal issues confronting the profession. The Yearbook covers marital disputes, breach of contract actions, damages, dissenting shareholder disputes, estate and gift tax cases, federal taxation, intellectual property cases, bankruptcy litigation, and more. Learn more >>

Discount for Lack of Marketability and the IRS

October 2013

Discount for Lack of Marketability and the IRS, authored by Michael Gregory, provides the single most authoritative and up-to-date introduction available on the topic of discounts for lack of marketability (DLOM) and the IRS.  Learn more >>

Business Appraisals and the IRS

October 2013

Business Appraisals and the IRS, authored by expert Michael Gregory, is specifically written for business appraisers, expert witnesses, and those who work with or for the IRS. This must-have publication aids the reader in understanding IRS classification and the review process with dozens of practical tips and a 54-page chapter on valuing interests in S-Corps. Learn more >>

BVR's Guide to Discounts for Lack of Marketability, Fifth Edition (2 Volumes)

August 2013

In the fifth edition of BVR's Guide to Discounts for Lack of Marketability, John Stockdale, Sr. offers the newest treatise on the theories, evidence, and techniques for determining discounts for lack of marketability (DLOM). DLOM is one of the most discussed topics in the business valuation profession with a historically wide divergence in how valuators approach it. Learn more >>

Leaps and the DLOM

January 2013

Authored by Ron Seaman, LEAPS and the DLOM is an indispensable resource for every valuation practitioner. Ron has been studying the universe of Long-Term Equity Anticipation Securities (LEAPS) for five years to understand what they show about discounts for lack of marketability (DLOMs), which are key attributes in the valuation of closely-held shareholdings and other interests.  Learn more >>

Understanding Business Valuation: A Practical Guide to Valuing Small- to Medium-Sized Businesses, 4th edition

September 2012

Written by Gary Trugman, Understanding Business Valuation: A Practical Guide to Valuing Small-to Medium-Sized Businessessimplifies a technical and complex area of practice with real-world experience and examples. Trugman's informal, easy-to-read style covers all the bases in the various valuation approaches, methods, and techniques.  Learn more >>

Business Valuation Discounts & Premiums, 2nd Edition

April 2009

In this newly updated edition of Business Valuation: Discounts and Premiums, Shannon Pratt brings together the latest collective wisdom and knowledge about all major business discounts and premiums. Learn more >>

Valuing a Business: The Analysis and Appraisal of Closely Held Companies, 5th Ed.

January 2008

Since the first edition was published in 1981, the profession of business appraisal has matured immensely. The IRS has come out with business valuation guidelines, and the AICPA has published their business valuation standards. While each organization’s standards or guidelines are slightly different from the others, there is unanimous agreement on the central concepts of business valuation.  Learn more >>
Training

Control Premia

Deal & Market Data

FactSet Mergerstat/BVR Control Premium Study

Rely on nearly 19 years of detailed transaction data in the FactSet Mergerstat /BVR Control Premium Study database. This robust online resource provides empirical support for quantifying control premiums, implied minority discounts, and public company valuation multiples.  Learn more >>

The FMV Restricted Stock Study & DLOM Calculator

The FMV Restricted Stock Study, updated quarterly, is a thoroughly vetted, restricted stock sourced discount for lack of marketability database that provides empirical support to quantify marketability discounts used in the business valuation, venture capital, and merger and acquisition (M&A) professions. Take advantage of 760+ rigorously screened transactions with up to 60 data fields. Learn more >>

Valuation Advisors Lack of Marketability Discount Study

Defend your discounts for lack of marketability with the most current data in the Valuation Advisors Lack of Marketability Discount Study. This robust, online database includes 12,580+ pre-IPO transactions, including 1,190+ non-U.S. deals covering 30 countries, from 1985-present.  Learn more >>
News & Research

Business Valuation Update

The Business Valuation Update (BVU), a monthly newsletter with searchable online access, includes new thinking from leading professionals, detailed reports from valuation conferences, analysis of new business valuation approaches, thorough analysis of “landmark” legal cases in key business valuation issues, regulatory and standards updates, and much more. Learn more >>

BVLaw

Attorneys and appraisers alike turn to the exclusive BVLaw collection of 3,700+ cases and case digests concerning business valuation issues including economic damages, lost profits, estate and gift tax, divorce, shareholder repression, partnership dissolution, securities litigation, and more. Learn more >>
Blog Posts

Challenge to new Section 2704 regulations is shaping up

The accounting, valuation, and legal professions are hard at work to defeat the Treasury Department's proposed Section 274 regulations. The new regs would curtail, if not entirely eliminate, valuation discounts in family-controlled entities. Read more >>

Proposed method to deal with confusion over discounts

A number of leading valuation experts have called for the profession to speak with one voice and eliminate the confusion over the use of discounts. One valuation expert offers up some nomenclature and—more importantly—a framework that he hopes will help with this thorny issue. Read more >>

NACVA's star-studded silver anniversary conference

Shannon Pratt, Roger Grabowski, Jim Hitchner, Nancy Fannon, and the Honorable Judge David Laro of the Tax Court are just a few of valuation thought leaders dubbed by NACVA as “industry titans” who gave presentations at the organization’s 25th anniversary conference in San Diego Read more >>

Court refuses to take stand on minority discount in buyback of shares

The parties retained a sole appraiser, whom they both knew from past appraisals he had done of the company. Prior to formally engaging the appraiser, in a court hearing, both sides broached the issue of whether it was appropriate to apply a minority discount in valuing the plaintiff's shares. The court declined to weigh in on the subject, but told the parties the minority discount issue should form “part of the discussion” they needed to have over the valuation methodology. Read more >>

Call for data to test new average-strike put option DLOM model

John Finnerty (Alix Partners) has developed a new version of his average-strike put option DLOM model that can be generalized to accommodate a restriction period of any particular fixed length. He presented the new model during a BVR webinar and asked the audience for comments and suggestions. He would also like some real data for testing purposes. Read more >>

NY fair value ruling deals blow to DLOM

The case featured experts whose professional backgrounds and valuation approaches could hardly be more dissimilar. Their value determinations were light-years apart. In trying to make sense of the conflicting testimony and achieve a plausible and fair result, the court decided it could not totally trust either valuation. Although it adopted the defense expert's valuation, it made two consequential changes to it. One was getting rid of the expert's admittedly high and insufficiently explained 35% discount for lack of marketability. Read more >>

BV profession needs "one clear voice" in New York DLOM matter

A prior post that highlighted the article “NY’s Unfair Application of Shareholder-Level Marketability Discounts,” written by Gil Matthews and Michelle Patterson (both with Sutter Securities) has sparked calls for the BV profession to speak with “one clear voice” on this issue. Read more >>

Call for change in New York’s DLOM stance gains steam

A "new note" in the hotly debated NY DLOM issue was sounded in an article in the January issue of Business Valuation Update. In the article, “NY’s Unfair Application of Shareholder-Level Marketability Discounts,” Gil Matthews and Michelle Patterson (both with Sutter Securities) write that New York “stands alone in that it favors (and some lower courts believe requires) the imposition of a marketability discount on dissenting shareholders in fair value determinations. There is broad consensus that DLOMs should seldom, if ever, be permitted in appraisal or oppression cases.” Read more >>

New Jersey DLOM ruling inches ancient dissenting shareholder suit to conclusion

The parties' most recent fight focused on whether the prevailing expert's DCF analysis embedded a marketability discount to account for illiquidity. If not, the trial court had to decided what the appropriate DLOM rate was. The plaintiff-selling shareholder argued in favor of a zero DLOM, the defendants-buying shareholders presented an expert valuation that specified a 35% DLOM, based on the expert's use of a market approach. Read more >>

Key ruling on enterprise goodwill from South Carolina Supreme Court