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DLOM
(redirected from Discount for Lack Of Marketability)

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DLOMDiscount for Lack Of Marketability


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DISCOUNT FOR LACK OF MARKETABILITY Two types of empirical studies are commonly used to benchmark discounts for lack of marketability (DLOM)--restricted stock studies and pre-initial public offering (pre-IPO) studies.
Most appraisers agree that a minority interest in a privately held company typically sells for less than a minority interest in a similar publicly traded company (a difference known as the discount for lack of marketability or "illiquidity discount"), and ample evidence exists to support the illiquidity discount for minority transactions.
25% discount for lack of marketability or minority interest to the units.
 
 
 
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