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How to Objectively Support Discounts for Lack of Marketability—The Empirical Method (160921C_N) |
Course CPE: 2 hour(s) Field(s) of Study: Finance–2 hrs Program Level: Basic Prerequisites: Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area. Advanced Preparation: None Delivery Method: Self-Study |
Item
Number: 16PBVWDC0921C
Shipping Weight: 0lbs. 0oz. |
Price:
$140.00 |
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Recording Date: September 21, 2016
Presenter: Bruce Johnson, ASA
In the middle of the ongoing debate of how to best quantify and support discounts for lack of marketability (DLOM), a crucial point is often overlooked. The reduction in value caused by the DLOM represents a market-made concession to compensate an investor for the increased risks of a less-marketable and illiquid concern. The application of a DLOM decreases the value of an interest to increase the rate of return to an investor. The purpose of this presentation will highlight how this fundamental concept can be effectively put to use to objectively determine a DLOM using three published studies that quantify the differences between public and private investments.
After completing this course, you will be able to:
- Recognize how to use empirical evidence to calculate, quantify, and defend a DLOM
- Determine how appraisers can best prepare their DLOM determinations by utilizing the speaker's experience with the IRS and Tax Courts using the techniques presented.
- Evaluate the quantitative and qualitative strengths of three historical studies on the difference between rates of return for public and private investments
- Identify where professional thinking currently stands on marketability discounts and what larger trends this may highlight
- Recognize how this methodology can help support your appraisal even if you use another method of determining DLOMs
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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