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| Deja Vu: Revisiting the Restricted Stock and Pre-IPO Studies (2128Q) |
Course CPE: 2 hours
Field(s) of Study: Economics–2 hrs
Program Level: Advanced
Prerequisites: Good knowledge of topic and experience in the field. Advanced level programs are often appropriate for seasoned professionals within organizations; however, they may also be beneficial for other professionals with specialized knowledge in a subject area.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 25BV1008DVR
Shipping Weight: 0lbs. 0oz. |
| Price:
$147.00 |
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Recording Date: October 8, 2025
Presenter: Chris Mercer
Program Description:
Chris Mercer revisits the restricted stock and pre-IPO studies that are frequently used to quantify discounts for lack of marketability (DLOM).
For decades, valuation professionals have relied on restricted stock and pre-IPO studies to estimate DLOM. In this course, Chris challenges their credibility as the primary method to derive DLOM and proposes a more thoughtful, theoretically grounded alternative.
Drawing from Mercer's “Déjà Vu” series, this course examines the historical evolution of DLOM analysis, critiques the continued sole reliance on dated studies, and presents the Quantitative Marketability Discount Model (QMDM) as a quantitative alternative or complement.
This course provides a comprehensive update on current best practices for quantifying marketability discounts and challenges participants to elevate the analytical rigor of their DLOM determinations.
Takeaways
This course challenges long-held beliefs about how DLOMs should be determined, calling for a shift away from sole reliance on restricted stock or pre-IPO studies. The QMDM, a shareholder-level DCF model, is a quantitative alternative or complement to the studies. Every appraiser should be familiar with it and this presentation will walk you through it. Attendees will be better able to defend their marketability discount conclusions with greater analytical rigor and confidence.
After completing this course, you will be able to:
- Identify the historical basis and limitations of restricted stock and pre-IPO studies used in DLOM analysis
- Identify the weaknesses of these studies
- Recognize how valuation theory for entire businesses parallels the theory for valuing illiquid minority interests
- Determine the structure and application of the QMDM
- Determine how dividends, expected holding periods, and incremental risk premiums influence the valuation of minority interests
- Select methods to improve the credibility of DLOM conclusions
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.
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