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141 average of the previously cited studies and noted in Table 40 Summary of Restricted Stock Studies and Table 41 Summary of Selected Court Cases) and make adjustments The process is as follows
• Determine an appropriate baseline discount for lack of marketability.
• Develop a list of factors to be reviewed subjectively using the following
categories including • Financial statement analysis
•
Dividend policy • Nature of the company,
its history, its position in the industry,
and its economic outlook • Management
• Amount of control
in the transferred shares • Restriction transferability
•
Holding period for the stock • Company’s redemption policy
• Costs associated with a public offering This methodology allows the valuator to evaluate the specific facts and circumstances regarding the valuation subject interest. The facts used to develop this analysis are rooted in the often cited nine factors discussed in the court’s ruling in Mandelbaum et al., v. Commissioner where the court listed nine factors to consider when developing a DLOM. The Mandelbaum case is an oft‐cited case when determining a DLOM. At issue was the DLOM to be applied to the common stock of a women’s apparel store in New Jersey. The judge in the case listed the above 9 factors that should be considered in increasing or decreasing a benchmark rate.
After careful consideration of the above 9 factors, it is our professional opinion Share with your friends: 
