Valuation Advisors’ DLOM database gets influx of international and domestic pre-IPO transactions
There’s been lots of news with the Valuation Advisors Discount for Lack of Marketability database recently—updates that sometimes get lost in all the other activity going on in the valuation profession. But, if you’re working on a report for a minority share position, you will want to be aware that: There have been 777 international [...]
See for yourself: Hall plays hardball with the IRS
Last week, Lance Hall (FMV Opinions), responded to the recently released IRS DLOM Job Aid (which, by the way, the IRS retroactively made “official” by publishing it on itswebsite). In this 100-minute BVR webinar, Hall not only described how the Job Aid misconstrues the FMV Restricted Stock Study, he discussed the methods and continuing merits of the [...]
Minority premium model may not apply to all properties–particularly if the shareholder smokes cigars
In response to last week’s item “’Minority premium’ model may not comply with FMV standard,” James B. Lurie (CapVal-American Business Appraisers, LLC) responded: Depending on the type of property, and assuming that the holder of the 1% interest has an undivided right to use the $2 million property that Mills-Mazer presents as an example, it [...]
Updated! BVR’s Guide to Discounts for Lack of Marketability
Highlights of this new edition include summary and analysis of: Practitioner methods Comparative factor analysis and methods for tiered entities Volatility Disposal period Controlling interests DLOM court cases Restricted stock studies, pre-IPO studies, and minority public stock evidence (including LEAPS and Bid-Ask spread) Matched Pairs Approach and discounts in private companies Computational models and method [...]
Major new updates to the two leading DLOM databases due soon
Both the Valuation Advisor’s Lack of Marketability Discount Study and the FMV Restricted Stock Study will be received huge updates in the very near future. Since these two studies are among the most heavily used in the tax courts and elsewhere, the enhanced data will help appraisers defend their discount for lack of marketability conclusions. [...]
Direct secondary market sales: the trend continues to build
Direct, secondary market transactions among private equity companies are surging, according a recent survey by PitchBook (co-sponsor of the new PitchBook/BVR Guideline Public Company Comps Tool™). Already, PE investors have completed 56 deals this year—compared to only 45 for all of 2009. These sales accounted for nearly a third (28.1%) of total U.S. exit activity [...]
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