This document summarizes and compares several quantitative models for estimating discounts for lack of marketability (DLOM) and liquidity. It defines key concepts like marketability, liquidity, and degrees of marketability. It then describes several DLOM models including the QMDM, Silber, Bajaj, Abbott, Tabak, Meulbroek, and option-based models like Black-Scholes put, average price Asian put, and lookback put. The document estimates potential DLOM discounts under different volatility and time assumptions using these models for comparative analysis.

1. “ Valuation and Financial Forensics – Educate, Communicate, Preserve” NACVA and IBA’s Annual Consultants’ Conference Discount for Lack of Marketability (Liquidity) Models: A Comparative Analysis Mainstream Track and Ashok Abbott, PhD present May 27-30, 2009 Boston, MA

3. Discount for Lack of Marketability (Liquidity) Models: A Comparative Analysis Ashok Abbott, PhD

4. Comparative Analysis of Liquidity and Marketability Discount Models

29. Discounts Comparison 7.90% 20.81% 9.36% 0.3 7.71% 20.20% 9.04% 0.29 7.52% 19.60% 8.72% 0.28 7.33% 18.98% 8.40% 0.27 7.14% 18.36% 8.07% 0.26 6.94% 17.74% 7.74% 0.25 6.75% 17.10% 7.41% 0.24 6.55% 16.47% 7.08% 0.23 6.35% 15.82% 6.74% 0.22 6.16% 15.17% 6.41% 0.21 5.96% 14.52% 6.07% 0.2 5.76% 13.86% 5.72% 0.19 5.56% 13.19% 5.38% 0.18 5.37% 12.51% 5.03% 0.17 5.17% 11.83% 4.68% 0.16 4.97% 11.14% 4.33% 0.15 4.77% 10.45% 3.98% 0.14 4.58% 9.75% 3.63% 0.13 4.38% 9.04% 3.27% 0.12 4.19% 8.33% 2.92% 0.11 4.00% 7.61% 2.56% 0.1 AAP LBP BSP Annual Standard Deviation

31. 40.64% 61.52% 23.82% 0.6 40.39% 60.97% 23.47% 0.59 40.13% 60.42% 23.12% 0.58 39.86% 59.85% 22.76% 0.57 39.58% 59.27% 22.39% 0.56 39.30% 58.68% 22.02% 0.55 39.00% 58.08% 21.64% 0.54 38.69% 57.47% 21.26% 0.53 38.37% 56.84% 20.87% 0.52 38.04% 56.21% 20.47% 0.51 37.70% 55.56% 20.07% 0.5 37.36% 54.90% 19.66% 0.49 37.00% 54.23% 19.25% 0.48 36.63% 53.55% 18.83% 0.47 36.25% 52.85% 18.40% 0.46 35.86% 52.14% 17.97% 0.45 35.46% 51.41% 17.53% 0.44 35.06% 50.68% 17.09% 0.43 34.64% 49.92% 16.64% 0.42 34.22% 49.16% 16.18% 0.41 33.79% 48.38% 15.72% 0.4 AAP LBP BSP Annual Standard Deviation

33. 59.63% 83.32% 23.72% 0.9 59.63% 83.06% 23.56% 0.89 59.63% 82.79% 23.39% 0.88 59.63% 82.52% 23.22% 0.87 59.63% 82.25% 23.04% 0.86 59.62% 81.97% 22.86% 0.85 59.62% 81.68% 22.68% 0.84 59.62% 81.38% 22.49% 0.83 59.62% 81.08% 22.29% 0.82 59.62% 80.78% 22.09% 0.81 59.61% 80.46% 21.89% 0.8 59.61% 80.14% 21.68% 0.79 59.61% 79.81% 21.46% 0.78 59.60% 79.48% 21.24% 0.77 59.60% 79.14% 21.02% 0.76 59.60% 78.79% 20.79% 0.75 59.59% 78.43% 20.55% 0.74 59.59% 78.06% 20.31% 0.73 59.58% 77.69% 20.07% 0.72 59.57% 77.30% 19.81% 0.71 59.57% 76.91% 19.56% 0.7 AAP LBP BSP Annual Standard Deviation