Appraisal Review Practice Aid for ESOP Trustees: Valuation Discounts and Premiums in ESOP Valuation

Debate over discounts and premiums in business valuation persists. Nowhere is this truer than with the marketability discount (or DLOM). Within the ESOP community, much of the confusion over DLOMs is mitigated due to the presence of put options. However, a legacy of concern over control premiums has now become an acute issue.