The size of market value discount due to lack of marketability of privately owned firms

What is it about?

Using a match-pair method, this study demonstrates that the market value discount due to lack of marketability for privately owned firms is significantly larger than current discounts applied by the courts and business appraisers.

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Why is it important?

This study provides evidence that the discount from lack of marketability for privately held firms is larger than discounts applied by the courts and appraisers and existing studies that examine the discount for lack of marketability (DLOM).