http://www.bvresources.com 2009 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 Intial public offering (IPO) studies Discounted cash flow (DCF) model (QMDM, e.g.) Options valuation models Other (please specify in the comment field below) Question Title * 5. If you checked one or more answers to Question 4, please describe the facts and circumstances that might lead you to choose one methodology over another Exit >>
