A Nuanced Approach to Asset Valuation Marketability refers to the ease with which an asset can be sold, and the DLOM accounts for the reduced liquidity of an asset that is not easily traded in the open market. In business valuation, the DLOM is a critical yet contentious adjustment. This article discusses the underlying issues presented in this type of valuation and uses an example to explain the incrementa ...

How to Avoid Them! A 409A valuation refers to a method of determining the value of a company's common stock. In other words, the 409A valuation is a method of calculating fair market value (FMV) according to the regulations under the Internal Revenue Code (IRC). This valuation can be carried out using various types of valuation methodologies, however, it is important to avoid pitfalls in 409A valuation when ...

Consider Three Types of Private Preferred Stock Transactions, Each with Varying Degrees of Relevance to an Indication of Fair Value: Simple, Strategic, and Tranched Preferred Financing Last year, the AICPA issued guidance on evaluating private transactions with regards to their relevance in estimating the Fair Value of other securities within an enterprise via the back-solve method. The McLean Valuation Ser ...