Researching the effect of COVID-19 on the DLOM
Abstract: Business valuation experts often apply a discount for lack of marketability (DLOM) when valuing a private business interest. This adjustment reflects the relative difficulty of converting the interest into cash, quickly and at minimal cost, compared to publicly traded stocks. This article highlights common sources of empirical data that experts use to quantify the DLOM and explains how the COVID-19 crisis has affected the DLOM.
Valuation & Litigation Briefing / Litigation & Valuation Report