When is a discount for lack of marketability warranted?

Description

Abstract: Whether for purposes of buy-sell agreements, shareholder litigation, marital dissolutions or taxes, business valuations frequently require the application of a discount for lack of marketability (DLOM). This is particularly true when valuing a minority interest. This article outlines the 10 factors Judge David Laro of the U.S. Tax Court has enumerated as important when determining a DLOM and the three general categories they fall into.