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How Probability Affects Discounts for Lack of Marketability

 How Probability Affects Discounts for Lack of Marketability
CPE Credit

Program Type: Recorded Webinar (Audio, PPT Presentation)
Program Level: Advanced
Prerequisites: Good knowledge of topic and experience in the field. Advanced level programs are often appropriate for seasoned professionals within organizations.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) Hours
Fields of Study: Accounting
Item Number: 15PBV0402
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

Calculating a discount for lack of marketability (DLOM) is a vital operation in valuing and managing assets. This webinar presents the methodology and application of probability-based DLOM to asset valuations. The webinar includes:

- Using the look-back option model (Longstaff) to calculate DLOM, including rebuttal of criticisms
- How probability affects DLOMs based on the Longstaff approach, including variations in marketing/restriction periods and price volatility
- How marketing time varies based on industry, size, timing, and other metrics
- The effects of probability on the DLOMs calculated in the - Discount for Lack of Marketability Job Aid for IRS Valuation Professionals.

Learning Objectives

After completing this webinar, attendees will be able to:

- Explain the methodology and application of probability-based DLOM
- Cite how variations in marketing periods and price volatilities affect DLOMs

Who Should Attend

Valuation professionals including CPAs and attorneys


Marc Vianello, CPA, ABV, CFF
Mr. Marc Vianello is the managing member of Vianello Forensic Consulting, LLC. He is the inventor of the concept of probability-based discount for lack of marketability using the Longstaff look-back formula, and is the developer of the VFC DLOM Calculator. Mr. Vianello is a CPA, ABV, and CFF. He has written extensively regarding DLOM, the time periods needed to sell privately-held businesses, the specific company risks associated with abnormal debt levels, and adjusting cost of capital for varying market conditions. Mr. Vianello has testified extensively in Federal and State courts around the country in complex litigation of all types.