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141 of court cases that have dealt with the DLOM but ones that have shown the wide array of rulings.
Table 38 Summary of Selected Court Cases It is interesting to note that the average of the restricted stock studies and the handpicked court cases both are close to 30% DLOM.
Discount for Lack of Marketability Development In summary, the valuator believes that any interest in this Company
lacks an active market and is, therefore, illiquid. Any holder of that interest will experience uncertainty with respect to the ability
to liquefy the investment, unless that uncertainty is mitigated by contractor through other means acceptable to the holder. Besides the problems of actually trying to sell the stock, the liquidity of closely‐held stock is further impaired by banks and other lending institutions unwillingness to accept it as loan collateral as they would accept public stock. Therefore, investors expect a higher discount for traded securities that lack a high degree of marketability. Although many of the studies used to determine a discount for lack of marketability are not directly comparable
to many small businesses, they do provide a basis from which to evaluate a small company on a case‐by‐case basis. The valuator chose to take an assumed baseline discount (in this case the 30%
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