The discount for lack of marketability (DLOM) is one of the most contentious issues in business valuation. One reason is that the DLOM can lower a business interest’s value by as much as 35% or more. Another reason is that the DLOM varies significantly, depending on the rights and restrictions attached to the business interest. Here’s…
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Business Valuations Are Not Commodities
Owners of privately held business might need valuations of their interests for many reasons, including: Some owners may be tempted to hire the valuation professional with the lowest fees. After all, a business valuation is just a formality, isn’t it? Many owners perceive formal appraisals as something required by an outside party — such as the IRS,…
Installment Sales Can Be a Win-Win for Buyers and Sellers
For federal income tax purposes, an installment sale is when at least one payment of proceeds from an eligible sale is deferred until after the end of the tax year in which the sale occurs. This setup can be beneficial for a buyer that doesn’t have enough available cash to immediately pay the full purchase price. Special Interest…