Discount for Lack of Marketability (DLOM)

A valuation discount for illiquid private shares versus listed comparables — sellers should push back on excessive DLOM claims by generating competing bidder interest.

Seller Example

Promoter of a Rajkot forging unit facing the buyer's proposed 25% DLOM (cutting the multiple from 8x to 6x) runs a limited competitive process with two additional interested strategics, compressing the effective DLOM to 12% by demonstrating real market liquidity for the asset.