DLOM Without the Black Box: Introducing the AbbottModelDLOM Analytical Platform

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

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
This course will introduce the AbbottModelDLOM Analytical Platform as a structured, evidence-based approach to evaluating discounts for lack of marketability. The presentation will explain how the platform combines quarter-specific public-company data, identified reference cohorts, financial performance benchmarking, liquidity analysis, volatility measurement, and exchange-option models within a single analytical workflow. Particular attention will be given to the distinction between marketability, liquidity, and blockage, and to the importance of measuring the full period of delayed liquidity rather than relying only on a stated legal restriction period.

The course will describe how the platform forms peer cohorts using market, valuation quarter, industry classification, and company-size criteria. Participants will see how subject-company performance may be compared with peer lower-quartile, median, and upper-quartile measures while preserving the same cohort across the performance, DLOM, and Mandelbaum analyses. The presentation will also emphasize the value of identified cohort members, valid observation counts, documented fallback steps, and transparent model inputs.

The quantitative portion will review the principal exchange-option models used in marketability analysis. The Asian Average model will be presented as an average-realization framework associated with relatively symmetric information conditions. The Margrabe model will be discussed as a central market-participant case in which buyer and seller share public information. The Longstaff lookback model will be considered as a higher-side benchmark where adverse-selection or superior-timing concerns may be present. The course will also explain why exchange-option results must be converted properly into discounts from unrestricted value.

Finally, the course will address professional judgment and appropriate use. AbbottModelDLOM will be presented as a decision-support system rather than a black-box valuation conclusion. It will show how market evidence, peer comparisons, model indications, and qualitative considerations can be organized to support more transparent, consistent, and defensible DLOM analyses.

This course will include the following:

• A live platform demonstration showing subject-company entry, cohort formation, peer-member review, performance benchmarking, DLOM matrices, and Mandelbaum analysis.
• Case-study applications comparing results for different industries, company sizes, block sizes, volatility levels, restriction periods, and market environments.
• Empirical validation and research findings, including the comparison of observed restricted-stock discounts with exchange-option model estimates and the effect of registration rights and changing Rule 144 regimes. 

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

• Distinguish marketability, liquidity, and blockage, and explain how each concept affects the valuation of a nonmarketable or restricted ownership interest
• Explain the AbbottModelDLOM workflow, including the use of valuation-date-specific public-company data, identified peer cohorts, financial benchmarking, volatility, liquidity, and liquidation-period evidence
• Evaluate reference-cohort quality by considering market, quarter, industry, company size, peer count, fallback rules, and the consistency of the cohort across analytical modules
• Define the principal exchange-option models—Asian Average, Margrabe, and Longstaff—and relate each model to its underlying assumptions about information symmetry, timing, and realization of value
• Interpret platform results as analytical evidence rather than a mechanical conclusion, and use peer comparisons, model ranges, and Mandelbaum factors to support a transparent and defensible professional judgment

Take Aways
Attendees will learn to differentiate marketability, liquidity, and blockage, and explain how each may affect the value of a restricted or nonmarketable ownership interest. They will assess the quality and relevance of a reference cohort using valuation date, market, industry, company size, peer count, and documented fallback criteria. Additionally, they will interpret liquidity, volatility, block size, restriction period, and total delay as the principal quantitative inputs influencing DLOM estimates. Attendees of this course will distinguish Asian Average, Margrabe, and Longstaff model indications and select the framework most consistent with the transaction’s information and realization assumptions. Finally, they will use AbbottModelDLOM results to support a transparent professional conclusion by integrating peer performance, model outputs, Mandelbaum considerations, sensitivity analysis, and assignment-specific judgment.

Who Should Attend

Delivery Method Group Internet-Based Program Level Intermediate Advanced Preparation None Prerequisites Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.   Finance 1   Computer Software and Applications 1 Total CPE Hours   2

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