Discount for Lack of Marketability Guide and Toolkit

The Discount for Lack of Marketability (DLOM) Guide and Toolkit is a professional reference designed for use in valuation work involving non-marketable interests. Developed by valuation practitioners James Hitchner, Jim Alerding, Josh Angell, and Kate Morris, the resource compiles technical guidance, empirical research, legal precedent, and practical tools relevant to estimating DLOMs.

The publication includes analysis of established valuation models—such as option pricing methods and restricted stock studies—as well as commentary on their application in different valuation contexts. It also addresses how DLOM determinations are treated in regulatory and legal settings.

Included with the guide are 10 Excel-based tools that assist with calculations, including versions of the Black-Scholes, Finnerty, and Longstaff models, and a quintile-based restricted stock approach. These tools are designed to help professionals perform tailored DLOM analyses that reflect the characteristics of the subject interest.

Key Components

• Created by valuation professionals James Hitchner, Jim Alerding, Josh Angell, and Kate Morris

• Covers theoretical frameworks, research findings, valuation techniques, and relevant legal precedents related to DLOM

• Provides access to 10 Excel-based tools designed to support DLOM calculations

• Incorporates multiple valuation models, including restricted stock and option-based approaches such as QMDM, Black-Scholes, and Finnerty

• Includes a user manual with instructions for conducting calculations

• Reflects considerations consistent with current regulatory expectations and professional practices

• Applicable to both quantitative modeling and qualitative analysis in DLOM determinations