Courts are requiring appraisers to provide more detailed, entity-specific analysis of the discount for lack of marketability, which calls for an upgrade in the available empirical data.

Appraisers, clients, advisors, have long struggled to fine-tune the discount for lack of marketability (DLOM) to specific subject companies.  There is a reason for that: Courts desire empiricism, yet the empirical transaction data available so far has not been good enough to enable direct modeling of discounts and allow proper differentiation between high-discount and low-discoutn companies.

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