Mercer Capital considers several methods when developing a marketability discount. The resources presented on this page include the QMDM (a quantitative model we developed), as well as other information about the topic of marketability discounts that you may find of interest.
The Quantitative Marketability Discount Model (QMDM) presents a practical model to assist business appraisers in developing, quantifying and defending marketability discounts under the income approach.
This book enables the reader to understand and correctly apply fundamental valuation concepts. Thoroughly revised and expanded, the Second Edition demystifies modern valuation theory, bringing together various valuation concepts to reveal a comprehensive picture of business valuation.
Download these 12 short pieces authored by Z. Christopher Mercer, ASA, CFA, ABAR. These pieces examine the concept of the marketability discount, how a marketability discount is derived, and marketability discounts and business valuation standards.
The “Discount for Lack of Marketability Job Aid for IRS Valuation Professionals” was developed by the IRS’s Engineering/Valuation Program DLOM Team, released internally on September 25, 2009, and was posted on their website on August 22, 2011. While careful to note that it does not represent the official position of the IRS, it will likely be a much-referenced document, as well as fodder for cross-examination.
Download the slide deck from the September 15, 2011 webinar sponsored by Valuation Products & Services and presented by Z. Christopher Mercer, ASA, CFA, ABAR, Travis W. Harms, CFA, CPA/ABV, and Brian K. Peterson, CPA/ABV/PFS, ASA.
The Quantitative Marketability Discount Model has been used in appraisals appearing before the Tax Court several times. This package discusses those Tax Court cases that mention the QMDM and those that do not.
Originally published in 2005, this paper takes an in-depth look at the data in the FMV Restricted Stock Study™.