http://www.bvresources.com 2013 DLOM methods Question Title * 1. Assume that you are valuing an equity interest and determine that both a discount for lack of marketability and a discount for a minority interest are required. In your standard practice, would you (choose one): Aggregate the two discounts to determine a combined minority/lack of marketability discount? Or Quantify each discount separately? Please comment if you'd like: Question Title * 2. Assume that only a discount for lack of marketability (DLOM) is required in this particular valuation of an equity interest. In determining the DLOM, do you routinely consider the ten Mandelbaum factors? Yes No Please comment if you'd like: Question Title * 3. If you answered “yes” to Question 2, which of the ten Mandelbaum factors do you employ most frequently? (Check all that apply; leave any or all unchecked if you do not normally consider them.) Private vs. public sales of the stock Financial statement analysis Dividend policy Naure of the company: its history, industry position, economic outlook Company management Amount of control in the transferred shares Restrictions on transferability Holding period for the stock Company's redemption policy Costs associated with a public offering Question Title * 4. In your standard valuation practice, which of the following of the more common methodologies do you most likely use to quantify the DLOM? (Check all that apply.) Restricted stock studies Restricted stock equivalent analysis Pre-initial public offering (Pre-IPO) studies Cost of Flotation Pluris Data (Pluris Valuation Advisors) The FMV Restricted Stock Study (FMV Opinions) Long-Term Equity Anticipation Securities (LEAPS) Quantitative Marketability Discount Model (QMDM) The Longstaff Study The Chaffee Study The Finnerty Study Bid-Ask spread method Karen, Kopper, and Wruck analysis Hertzel and Smith analysis Bajaj analysis Denis, Ferris, and Sarin analysis Ashok B. Abbott liquidity anlaysis NICE (William Frazier) NERA (David Tabak) Partnership Profiles (Partnership Spectrum) Public versus private P/E acquistion ratios (MergerStat) Other (please specify in the comment field below) Question Title * 5. Of all your selections in question 4, which approach(es) do you use most often and why? I.e., what particular aspect of the approach, or facts and circumstances of the valuation, or past experience, might lead you to choose oner (or more) over the others? Question Title * 6. If you use the Pluris data and FMV Opinions data, do you: Run the model and use the results? Use the first stage of the model raw data and then analyze factors (e.g., Mandelbaum) to develop your DLOM? Use the first stage of the model and modify the results in another way? Question Title * 7. Do you typcially reconcile and explain the reconciliation process for your recommended DLOM in your report? Question Title * 8. Do you have any additional comments or observations about the determination of DLOM, in particular, or the general practice among BV professionals for determining DLOM? Exit >>
