Business Valuation Book Review: Discount for Lack of Marketability Guide and Toolkit

By Keiter CPAs

Business Valuation Book Review: Discount for Lack of Marketability Guide and Toolkit

By Harold G. Martin, Jr., CPA/ABV/CFF, ASA, CFE | Partner, Valuation and Forensic Services

When valuing companies under the fair market value standard, many practitioners devote the majority of their report to explaining the valuation approach, but then deduct a discount for lack of marketability (DLOM) that materially reduces value without providing adequate support.  Such limited analysis of a DLOM is coming under increased scrutiny by the IRS as well as other users.  The new Discount for Lack of Marketability Guide and the related Toolkit by Jim Hitchner, Jim Alerding, Josh Angell, and Kate Morris, provides practitioners with the information and tools necessary to properly calculate and support a DLOM using both qualitative and quantitative methods.

The DLOM Guide is an excellent reference for both practitioners and users. It is a very detailed and well-documented text which includes a comprehensive discussion of the current theory, empirical studies, databases, and methods used to determine DLOMs.

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Discount for Lack of Marketability Guide and Toolkit











This article was featured in Business Valuation Resources, LLC | Business Valuation Update, Vol. 23, No.3, March 2017. Reprinted with permission.


Harold Martin_1406_880Harold G. Martin, Jr., is the Partner-in-Charge of Keiter’s Valuation and Forensic Services Group. He is also a member of Keiter’s Executive Committee.  He has over 30 years of experience and specializes in valuation and forensic accounting, including financial investigations and litigation consulting and expert witness services. He is a frequent speaker and writer on valuation topics.  Read more of Harold’s insights on our blog.

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Keiter CPAs

Keiter CPAs

Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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