Editorial Type:
Article Category: Research Article
| Online Publication Date: 01 Dec 2014
Thoughts on Calculating DLOMs
Thoughts on Calculating DLOMs
PhD
Page Range: 102 – 112
In this article, we describe another method for calculating different discounts for lack of marketability (DLOMs) for each security in the capital structure based on its unique volatility. The primary merit of this method is that it requires a minimal change in appraiser practice. We also provide support for the use of incremental DLOMs when valuing securities based on a transaction in a non-marketable security.
Copyright: American Society of Appraisers
Figure 1
Ghaidarov's Combination Protective Put for Common Stock
Contributor Notes
Dwight Grant is a Managing Director in PwC's Value Analytics and Derivatives Practice. He is based in San Francisco.