Debating the Incremental DLOM : A Nuanced Approach to Asset Valuation

Co-Sponsored by the National Association of Certified Valuators and Analysts®  (NACVA®) 

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
In this course, we will explore the concept of the incremental discount for lack of marketability (DLOM) and its significance in asset valuation, particularly for non-liquid assets. We will define DLOM, discuss why it is applied, and focus on the incremental DLOM, which addresses additional discounts for assets already subject to primary discounts, such as minority interest. Through case studies, we will demonstrate how this discount is calculated using various methodologies, and explore the regulatory guidelines and challenges involved. By the end of the course, attendees will gain practical knowledge to confidently apply incremental DLOM in real-world valuation scenarios.

How You Will Benefit
After completing this course, attendees will be able to:

• Define the concept of marketability and explain its impact on asset valuation
• Describe the discount for lack of marketability (DLOM) and its significance in the valuation process
• Differentiate between primary DLOM and incremental DLOM, and explain the reasons for applying incremental DLOM
• Identify the factors that influence the magnitude of the incremental DLOM, such as holding period, volatility, and expected dividends
• Calculate the incremental DLOM using various methodologies, including empirical studies, option pricing models, and restricted stock studies
• Apply the principles of incremental DLOM to real-world scenarios and case studies involving different types of assets
• Recognize and review the regulatory and professional guidelines set by organizations such as the IRS, ASA, and ASB that govern the application of DLOM and incremental DLOM
• Identify and discuss the challenges and criticisms associated with determining and applying incremental DLOM, and propose strategies to address these issues

Take Aways
After completing this course, attendees will be equipped with a robust understanding of the concept and application of the incremental discount for lack of marketability (DLOM). They will be able to accurately define and differentiate between primary DLOM and incremental DLOM, and calculate the appropriate discount rates using various methodologies. Additionally, they will have the knowledge to navigate regulatory guidelines and address common challenges and criticisms in the valuation process, thereby enhancing the accuracy and credibility of their asset valuations.

Who Should Attend

Delivery Method Group Internet-Based Program Level Basic Advanced Preparation None Prerequisites Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.   Accounting 1 Total CPE Hours   1

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