Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
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Discount for Lack of Marketability
« Back to Glossary IndexCategory: Business Valuation
The discount for lack of marketability (DLOM) is sometimes applied to private companies when valuing them. It relates to the company not being publicly traded on a financial exchange. Publicly traded companies are perceived to have a “market” since the shares can be bought or sold in a centralized marketplace. Private companies do not have a centralized market and are perceived as having less of a market. As a result, in theory, private companies may in some instances be valued at a lower amount than a public company to reflect the lack of a market.
« Back to Glossary IndexAcronym:
DLOM
French Translation: