DLOM dilemma – Defendants’ bad-faith behavior precluded marketability discount
Abstract: In Sipko v. Koger, Inc., the New Jersey Supreme Court found that a discount for lack of marketability (DLOM) was inappropriate, noting the “defendants’ bad-faith behavior throughout this 15-year litigation.” This article summarizes this family business drama. A sidebar discusses the issue of applying DLOMs to controlling interests in private businesses to reflect the time and effort needed to convert them to cash. Sipko v. Koger, Inc., 276 A.3d 160 (N.J. Sup. Ct. 2022).