QMDM Companion, Version 4.0

by Z. Christopher Mercer, FASA, CFA, ABAR

Format: ZIP File (PDF and Excel Model)
Price: $125.00
Page Count: 40 pages
Publication Date: 2008

The very latest version of the Quantitative Marketability Discount Model (QMDM) now includes a revised and expanded explanatory manual, delivered as a .zip file electronically via email.

This rate-of-return based model, the QMDM, provides the appraiser with a tool to relate the marketability discount to the specific facts and circumstances of the subject company. The QMDM is superior to traditional benchmark analysis and to the more detailed use of restricted stock studies since it specifically identifies the economic benefits expected by hypothetical willing buyers (and sellers), and applies basic present value analysis to well-defined parameters.

In addition, rate-of-return models, such as the QMDM, are the tools that satisfy the requirements of USPAP.

The QMDM presents a practical model to assist business appraisers in developing, quantifying and defending marketability discounts under the income approach. The model allows you to quickly and easily quantify marketability discounts in the appraisal of minority business interests.

Included in the QMDM Companion, Version 4.0:

  • Revised and expanded explanatory text, excerpted from Business Valuation: An Integrated Theory, Second Edition
  • A spreadsheet presentation of the QMDM which will walk you through the model’s assumptions and assist in developing your valuation rationale based on factors specific to your client.
  • A special “test” section of the QMDM will allow you to easily test sensitivity to changes in key assumptions.
  • Provides you with an analysis that is ready to print or import directly into your valuation report.