Discount for Lack of Marketability - Comphrensive Study

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DLOM Discount for Lack of Marketability September 2015 Alps Venture Partners AMERICAS | ASIA PACIFIC | EUROPE MENA

Transcript of Discount for Lack of Marketability - Comphrensive Study

Page 1: Discount for Lack of Marketability - Comphrensive Study

DLOMDiscount for Lack of Marketability

September 2015

Alps Venture Partners

A M E R I C A S | A S I A PA C I F I C | E U R O P E M E N A

Page 2: Discount for Lack of Marketability - Comphrensive Study

Discount for Lack of Marketability

1pageA L P S V E N T U RE P A R T N E R S

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Marketability is defined in the International Glossary of Business Valuation Terms as “the abilityto quickly convert property to cash at minimal cost”. Some texts go on to add “with a high degree ofcertainty of realizing the anticipated amount of proceeds”.

A Discount for Lack of Marketability (DLOM) is “an amount or percentage deducted from the valueof an ownership interest to reflect the relative absence of marketability.”

Chaffe Model Finnerty Model

In Protective Put Approach, the cost of a put optioncalculated at the money acts as an estimate for the discountfor lack of marketability. The value of the put option iscalculated using the Black-Scholes Option Pricing Model. Aput option provides a buyer the right but not the obligationto sell the investment held by him at the strike price of theput option. By purchasing a put option, the buyer ensuresthe liquidity of his investment as he now has the right to sellthe investment at the strike price of the put option.

This model assumes the investor is able to purchase an“average-strike” put option (an “Asian” put). The payout onan Asian put is based on the average value of the underlyingshare over a period of time, rather than the final value. Itreflects investors’ inability to time the market by eliminatingthe ability to earn average trading profits. This cost of putoption becomes the implied discount for an investor holdingstock of a privately-held firm, as this stock lacksmarketability.

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Discount for Lack of Marketability

2pageA L P S V E N T U RE P A R T N E R S

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Given two identical business interests, a higher price will be paid by investors in the market for thebusiness interest that can be converted to cash most rapidly, without risk of loss in value. Somefactors that influence the magnitude of the DLOM include:

• Prospects for liquidity (the greater the prospects, the lower the discount would tend to be)• Restrictions on transferability of equity securities by the holder. (the lesser the extent and duration of any

such restrictions, the lower the discount would tend to be)• Size and timing of distributions (the greater the amount of dividends paid to the securities, the lower the

discount would tend to be (typically not a factor for early-stage enterprises but possibly a factor for more mature enterprises)).

• Concentration of ownership. (The higher the concentration of ownership (for example, among founders or one or two investors), the higher the discount would tend to be.)

• Length of time to a liquidity event (a longer holding period increases the DLOM) • Expected volatility of the security (higher volatility increases the DLOM) • Dividend payouts (frequent cash dividends lower the DLOM)• Methodology utilized to estimate the pre-DLOM equity value

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Americas

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 11.1% 14.3% 22.1% 27.9% 31.5%

Information Technology 11.7% 15.4% 22.8% 30.8% 41.2%

Utilities 7.0% 9.4% 15.8% 18.1% 22.1%

Industrials 9.9% 13.7% 20.2% 27.2% 36.5%

Consumer Discretionary 9.8% 13.1% 19.1% 26.0% 34.7%

Healthcare 13.0% 18.2% 25.9% 35.3% 47.3%

Financials 7.2% 10.0% 11.6% 15.7% 26.0%

Energy 14.5% 18.2% 28.4% 35.8% 46.9%

Materials 15.9% 21.2% 31.5% 43.0% 57.5%

Telecommunication Services 9.9% 13.6% 21.0% 26.4% 35.1%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.3% 8.1% 12.3% 15.0% 17.9%

Information Technology 6.7% 8.8% 12.7% 16.7% 22.4%

Utilities 4.0% 5.3% 8.9% 10.2% 13.4%

Industrials 5.7% 7.8% 11.3% 14.8% 20.4%

Consumer Discretionary 5.6% 7.5% 10.8% 14.3% 19.8%

Healthcare 7.5% 10.3% 14.4% 19.0% 24.6%

Financials 4.2% 5.7% 6.7% 9.1% 15.9%

Energy 8.3% 10.3% 15.6% 19.1% 24.5%

Materials 9.1% 11.9% 17.2% 22.2% 27.6%

Telecommunication Services 5.7% 7.7% 11.6% 14.3% 19.3%

Chaffe Model DLOM

Finnerty Model DLOM

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Europe, MENA & Africa

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 8.5% 11.8% 14.6% 19.8% 26.6%

Information Technology 10.0% 14.1% 18.7% 25.7% 33.7%

Utilities 8.9% 12.3% 16.3% 22.2% 31.2%

Industrials 8.9% 12.6% 16.0% 22.5% 30.8%

Consumer Discretionary 9.0% 13.1% 17.1% 23.6% 32.9%

Healthcare 10.0% 14.5% 18.5% 25.5% 33.5%

Financials 7.9% 11.3% 14.2% 20.5% 28.9%

Energy 11.6% 16.4% 22.7% 29.4% 39.9%

Materials 10.7% 15.1% 19.2% 25.9% 36.4%

Telecommunication Services 9.3% 12.9% 16.4% 22.9% 30.2%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 4.9% 6.7% 8.3% 11.4% 16.5%

Information Technology 5.8% 8.1% 10.6% 14.4% 19.9%

Utilities 5.1% 7.0% 9.3% 12.6% 18.5%

Industrials 5.1% 7.2% 9.1% 12.8% 18.5%

Consumer Discretionary 5.2% 7.5% 9.7% 13.3% 19.3%

Healthcare 5.7% 8.2% 10.6% 14.4% 19.7%

Financials 4.6% 6.5% 8.1% 11.7% 17.2%

Energy 6.6% 9.3% 12.8% 16.3% 22.4%

Materials 6.2% 8.6% 10.9% 14.6% 20.9%

Telecommunication Services 5.4% 7.3% 9.3% 13.1% 18.3%

Chaffe Model DLOM

Finnerty Model DLOM

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Asia Pacific

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 10.9% 14.5% 17.2% 22.1% 30.2%

Information Technology 12.9% 16.8% 20.8% 27.1% 36.7%

Utilities 11.4% 14.9% 17.1% 21.5% 29.2%

Industrials 12.0% 15.7% 18.5% 24.0% 32.6%

Consumer Discretionary 11.8% 15.8% 18.6% 24.2% 33.7%

Healthcare 13.2% 17.4% 20.8% 26.8% 36.3%

Financials 10.6% 14.6% 17.1% 22.8% 33.1%

Energy 13.1% 17.8% 23.2% 30.0% 40.9%

Materials 13.0% 17.4% 21.7% 28.7% 37.8%

Telecommunication Services 10.2% 14.2% 17.3% 23.3% 33.6%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.2% 8.3% 9.8% 12.7% 18.5%

Information Technology 7.4% 9.5% 11.8% 15.4% 21.6%

Utilities 6.5% 8.5% 9.8% 12.5% 17.9%

Industrials 6.9% 8.9% 10.5% 13.8% 19.7%

Consumer Discretionary 6.7% 9.0% 10.6% 13.9% 20.2%

Healthcare 7.6% 9.9% 11.8% 15.2% 21.3%

Financials 6.1% 8.3% 9.7% 13.1% 19.9%

Energy 7.5% 10.1% 13.0% 16.6% 22.7%

Materials 7.4% 9.9% 12.3% 16.0% 21.8%

Telecommunication Services 5.9% 8.1% 9.8% 13.2% 19.6%

Chaffe Model DLOM

Finnerty Model DLOM

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DLOM | INDUSTRY & PERIOD | COMPANY SIZE - $1,000 M+

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Americas

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 5.7% 7.1% 9.6% 12.3% 17.6%

Information Technology 7.0% 9.1% 12.4% 16.4% 24.4%

Utilities 5.2% 6.6% 9.1% 10.4% 12.6%

Industrials 6.0% 7.5% 10.6% 13.4% 21.2%

Consumer Discretionary 6.3% 8.0% 10.9% 14.6% 23.1%

Healthcare 8.1% 10.8% 14.2% 19.3% 26.6%

Financials 5.3% 6.5% 8.7% 11.3% 18.3%

Energy 8.8% 10.6% 15.9% 18.0% 24.4%

Materials 7.5% 9.1% 12.5% 15.2% 23.4%

Telecommunication Services 6.1% 8.0% 11.4% 14.4% 20.9%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 3.3% 4.1% 5.6% 7.5% 12.1%

Information Technology 4.1% 5.2% 7.2% 9.8% 15.9%

Utilities 3.0% 3.8% 5.3% 6.4% 9.3%

Industrials 3.4% 4.3% 6.2% 8.1% 14.2%

Consumer Discretionary 3.7% 4.6% 6.4% 8.7% 15.2%

Healthcare 4.7% 6.2% 8.2% 11.2% 16.7%

Financials 3.0% 3.7% 5.1% 6.9% 12.5%

Energy 5.1% 6.1% 9.2% 10.7% 15.9%

Materials 4.3% 5.2% 7.2% 9.1% 15.4%

Telecommunication Services 3.5% 4.6% 6.6% 8.6% 13.7%

Chaffe Model DLOM

Finnerty Model DLOM

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Europe, MENA & Africa

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 5.3% 7.2% 9.8% 12.1% 16.3%

Information Technology 7.1% 9.7% 12.8% 16.4% 24.7%

Utilities 6.2% 8.1% 10.4% 13.3% 19.5%

Industrials 5.8% 7.7% 10.5% 13.6% 20.8%

Consumer Discretionary 6.3% 8.3% 11.1% 14.4% 22.4%

Healthcare 6.4% 8.8% 11.5% 15.4% 20.1%

Financials 5.9% 7.8% 10.3% 13.7% 22.1%

Energy 7.5% 10.1% 15.0% 18.0% 24.8%

Materials 7.5% 9.5% 12.6% 16.1% 23.5%

Telecommunication Services 6.2% 9.2% 12.8% 16.4% 21.9%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 3.1% 4.1% 5.7% 7.4% 11.5%

Information Technology 4.1% 5.6% 7.4% 9.8% 16.0%

Utilities 3.6% 4.7% 6.1% 8.0% 13.2%

Industrials 3.4% 4.5% 6.2% 8.2% 14.0%

Consumer Discretionary 3.6% 4.8% 6.5% 8.6% 14.7%

Healthcare 3.7% 5.1% 6.7% 9.2% 13.6%

Financials 3.4% 4.5% 6.0% 8.2% 14.2%

Energy 4.4% 5.8% 8.7% 10.6% 16.2%

Materials 4.3% 5.5% 7.3% 9.6% 15.4%

Telecommunication Services 3.6% 5.3% 7.4% 9.7% 14.5%

Chaffe Model DLOM

Finnerty Model DLOM

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Asia Pacific

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 10.7% 13.3% 15.3% 18.4% 23.0%

Information Technology 15.5% 19.4% 23.0% 26.9% 32.1%

Utilities 11.7% 14.5% 16.2% 19.4% 24.9%

Industrials 13.7% 16.9% 19.7% 22.9% 28.1%

Consumer Discretionary 12.7% 15.8% 18.0% 21.6% 27.5%

Healthcare 13.8% 17.0% 18.6% 22.3% 27.1%

Financials 10.2% 12.9% 15.4% 19.1% 26.1%

Energy 12.3% 15.1% 16.9% 19.9% 26.5%

Materials 13.9% 16.9% 19.7% 23.1% 29.3%

Telecommunication Services 7.5% 9.6% 11.4% 15.4% 21.4%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.1% 7.6% 8.8% 10.9% 15.2%

Information Technology 8.8% 11.0% 13.0% 15.3% 19.8%

Utilities 6.7% 8.3% 9.3% 11.4% 16.1%

Industrials 7.8% 9.6% 11.2% 13.3% 17.8%

Consumer Discretionary 7.2% 9.0% 10.3% 12.5% 17.5%

Healthcare 7.9% 9.6% 10.6% 12.9% 17.2%

Financials 5.9% 7.4% 8.8% 11.2% 16.7%

Energy 7.0% 8.6% 9.7% 11.7% 17.0%

Materials 7.9% 9.6% 11.2% 13.4% 18.4%

Telecommunication Services 4.3% 5.5% 6.7% 9.1% 14.1%

Chaffe Model DLOM

Finnerty Model DLOM

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DLOM | INDUSTRY & PERIOD | COMPANY SIZE $500M - $1,000M

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Americas

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 7.5% 9.9% 13.1% 17.4% 22.9%

Information Technology 7.9% 10.4% 14.9% 20.3% 30.5%

Utilities 6.0% 7.8% 10.5% 12.3% 14.4%

Industrials 7.1% 9.0% 12.9% 16.9% 27.0%

Consumer Discretionary 8.0% 10.4% 14.2% 19.0% 28.8%

Healthcare 10.6% 14.0% 20.3% 26.2% 35.0%

Financials 5.9% 7.2% 10.0% 13.2% 20.4%

Energy 11.8% 14.8% 22.6% 25.2% 32.6%

Materials 9.6% 11.8% 15.7% 20.1% 30.6%

Telecommunication Services 9.6% 11.4% 21.2% 25.5% 35.1%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 4.3% 5.7% 7.6% 10.3% 15.1%

Information Technology 4.6% 6.0% 8.6% 11.9% 19.0%

Utilities 3.5% 4.5% 6.1% 7.5% 10.4%

Industrials 4.1% 5.2% 7.5% 10.1% 17.4%

Consumer Discretionary 4.6% 6.0% 8.2% 11.2% 18.0%

Healthcare 6.1% 8.0% 11.5% 14.9% 20.8%

Financials 3.4% 4.1% 5.8% 8.0% 13.7%

Energy 6.8% 8.5% 12.8% 14.6% 20.1%

Materials 5.5% 6.8% 9.1% 11.8% 19.1%

Telecommunication Services 5.5% 6.6% 11.8% 14.5% 21.3%

Chaffe Model DLOM

Finnerty Model DLOM

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Europe, MENA & Africa

10pageA L P S V E N T U RE P A R T N E R S

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.6% 9.3% 12.0% 16.0% 23.4%

Information Technology 7.8% 10.3% 14.8% 19.6% 25.9%

Utilities 5.9% 8.6% 11.1% 15.5% 20.8%

Industrials 6.8% 9.1% 12.6% 16.7% 24.3%

Consumer Discretionary 6.9% 9.2% 12.4% 16.0% 24.5%

Healthcare 8.1% 11.6% 16.0% 22.3% 29.7%

Financials 5.2% 7.3% 9.8% 14.5% 20.9%

Energy 9.4% 12.8% 17.1% 20.3% 30.5%

Materials 8.1% 10.7% 13.8% 18.5% 24.9%

Telecommunication Services 7.4% 9.8% 12.9% 16.5% 20.7%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 3.8% 5.4% 7.0% 9.6% 15.3%

Information Technology 4.5% 5.9% 8.5% 11.5% 16.8%

Utilities 3.4% 4.9% 6.4% 9.3% 13.9%

Industrials 3.9% 5.3% 7.3% 10.0% 15.7%

Consumer Discretionary 4.0% 5.3% 7.2% 9.6% 15.9%

Healthcare 4.6% 6.7% 9.2% 12.7% 18.3%

Financials 3.0% 4.2% 5.7% 8.5% 13.3%

Energy 5.4% 7.4% 9.8% 12.0% 18.2%

Materials 4.7% 6.1% 8.0% 10.8% 15.9%

Telecommunication Services 4.3% 5.7% 7.5% 9.8% 13.9%

Chaffe Model DLOM

Finnerty Model DLOM

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Asia Pacific

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 12.9% 15.8% 18.3% 21.6% 28.1%

Information Technology 16.6% 20.3% 24.0% 28.3% 34.4%

Utilities 13.9% 17.6% 19.6% 23.0% 29.5%

Industrials 16.0% 19.4% 22.6% 26.0% 30.9%

Consumer Discretionary 13.5% 16.8% 19.6% 23.4% 30.0%

Healthcare 15.0% 18.5% 21.2% 25.3% 31.6%

Financials 10.6% 13.3% 16.0% 20.4% 28.8%

Energy 13.9% 16.9% 20.2% 25.6% 32.0%

Materials 16.0% 19.7% 22.8% 26.0% 32.2%

Telecommunication Services 9.1% 11.6% 13.6% 18.1% 25.9%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 7.3% 9.0% 10.4% 12.6% 17.7%

Information Technology 9.4% 11.4% 13.5% 16.1% 20.9%

Utilities 7.9% 10.0% 11.2% 13.3% 18.6%

Industrials 9.2% 11.0% 12.8% 14.9% 19.2%

Consumer Discretionary 7.7% 9.6% 11.1% 13.5% 18.7%

Healthcare 8.5% 10.5% 12.1% 14.6% 19.6%

Financials 6.1% 7.6% 9.2% 11.9% 17.9%

Energy 7.9% 9.6% 11.5% 14.6% 19.5%

Materials 9.2% 11.2% 12.9% 15.0% 19.9%

Telecommunication Services 5.2% 6.6% 7.9% 10.7% 16.7%

Chaffe Model DLOM

Finnerty Model DLOM

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DLOM | INDUSTRY & PERIOD | COMPANY SIZE $100M - $500M

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Americas

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 8.7% 11.3% 15.2% 20.5% 27.8%

Information Technology 10.0% 13.0% 17.9% 23.8% 34.8%

Utilities 6.6% 8.4% 11.5% 14.8% 25.6%

Industrials 9.2% 12.1% 16.5% 21.7% 31.8%

Consumer Discretionary 9.1% 12.1% 16.1% 20.6% 30.3%

Healthcare 12.8% 17.4% 24.4% 33.9% 47.6%

Financials 5.8% 8.0% 9.3% 12.5% 21.7%

Energy 13.8% 17.2% 24.4% 28.9% 38.1%

Materials 11.9% 14.5% 19.4% 25.2% 36.9%

Telecommunication Services 8.5% 12.1% 15.6% 19.4% 29.2%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 5.0% 6.5% 8.7% 12.0% 17.4%

Information Technology 5.7% 7.4% 10.3% 13.8% 21.1%

Utilities 3.8% 4.9% 6.6% 8.8% 15.5%

Industrials 5.3% 7.0% 9.5% 12.6% 19.4%

Consumer Discretionary 5.2% 7.0% 9.3% 12.0% 18.8%

Healthcare 7.3% 9.9% 13.7% 18.8% 25.7%

Financials 3.3% 4.6% 5.5% 7.6% 14.3%

Energy 7.9% 9.8% 13.8% 16.4% 22.3%

Materials 6.8% 8.3% 11.1% 14.5% 21.8%

Telecommunication Services 4.9% 6.9% 8.9% 11.4% 18.4%

Chaffe Model DLOM

Finnerty Model DLOM

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Europe, MENA & Africa

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.4% 8.8% 10.3% 14.0% 20.4%

Information Technology 7.5% 10.2% 13.9% 18.8% 26.2%

Utilities 6.4% 9.8% 12.6% 18.1% 27.1%

Industrials 7.5% 10.4% 13.4% 18.2% 27.4%

Consumer Discretionary 6.7% 9.4% 12.2% 16.9% 25.4%

Healthcare 8.4% 12.2% 16.7% 23.5% 33.5%

Financials 6.3% 9.0% 11.4% 15.9% 22.5%

Energy 10.7% 14.1% 19.8% 24.4% 35.9%

Materials 8.1% 11.2% 14.4% 20.9% 29.3%

Telecommunication Services 8.6% 11.9% 14.9% 23.6% 33.4%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 3.7% 5.0% 6.0% 8.4% 13.6%

Information Technology 4.3% 5.8% 8.0% 11.0% 16.7%

Utilities 3.7% 5.7% 7.3% 10.7% 17.3%

Industrials 4.3% 6.0% 7.8% 10.7% 17.2%

Consumer Discretionary 3.8% 5.4% 7.1% 10.0% 16.3%

Healthcare 4.8% 7.0% 9.6% 13.5% 20.0%

Financials 3.6% 5.2% 6.6% 9.4% 14.7%

Energy 6.1% 8.1% 11.3% 14.1% 21.2%

Materials 4.6% 6.4% 8.3% 12.1% 18.1%

Telecommunication Services 5.0% 6.8% 8.6% 13.5% 20.0%

Chaffe Model DLOM

Finnerty Model DLOM

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Asia Pacific

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 9.9% 13.2% 16.1% 20.1% 26.7%

Information Technology 11.8% 15.2% 18.7% 24.1% 32.7%

Utilities 9.8% 13.0% 14.9% 19.1% 26.6%

Industrials 10.6% 13.6% 16.5% 21.4% 29.2%

Consumer Discretionary 10.6% 14.1% 16.9% 21.6% 30.0%

Healthcare 11.9% 15.6% 18.6% 24.3% 34.6%

Financials 9.2% 12.5% 14.8% 19.5% 29.0%

Energy 10.8% 14.1% 18.3% 23.4% 33.1%

Materials 11.5% 14.8% 18.0% 22.8% 30.1%

Telecommunication Services 12.3% 16.7% 18.9% 29.0% 42.6%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 5.7% 7.5% 9.1% 11.6% 16.7%

Information Technology 6.8% 8.6% 10.7% 13.9% 19.9%

Utilities 5.6% 7.4% 8.6% 11.2% 16.8%

Industrials 6.1% 7.8% 9.4% 12.4% 18.2%

Consumer Discretionary 6.1% 8.0% 9.6% 12.5% 18.4%

Healthcare 6.8% 8.9% 10.6% 14.0% 20.7%

Financials 5.3% 7.1% 8.5% 11.4% 18.0%

Energy 6.2% 8.1% 10.4% 13.5% 20.1%

Materials 6.6% 8.4% 10.3% 13.2% 18.7%

Telecommunication Services 7.0% 9.5% 10.8% 16.3% 23.7%

Chaffe Model DLOM

Finnerty Model DLOM

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DLOM | INDUSTRY & PERIOD | COMPANY SIZE LESS THAN $100M

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Americas

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 17.4% 22.8% 32.5% 43.4% 51.4%

Information Technology 16.4% 22.3% 30.7% 42.2% 55.1%

Utilities 15.5% 22.5% 32.3% 41.2% 53.3%

Industrials 15.2% 22.5% 30.6% 43.0% 55.0%

Consumer Discretionary 15.6% 21.9% 29.7% 41.5% 52.5%

Healthcare 16.6% 24.0% 33.0% 45.1% 60.8%

Financials 9.3% 13.4% 14.3% 19.7% 32.8%

Energy 19.4% 25.2% 35.6% 46.2% 60.1%

Materials 19.4% 26.6% 36.1% 49.7% 65.8%

Telecommunication Services 16.2% 23.7% 31.4% 44.0% 57.0%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 9.9% 12.8% 17.7% 22.3% 25.7%

Information Technology 9.3% 12.5% 16.8% 22.0% 27.3%

Utilities 8.8% 12.6% 17.5% 21.4% 26.4%

Industrials 8.7% 12.6% 16.8% 22.2% 27.1%

Consumer Discretionary 8.9% 12.3% 16.3% 21.6% 26.3%

Healthcare 9.5% 13.5% 18.0% 23.5% 29.2%

Financials 5.3% 7.6% 8.1% 11.1% 18.8%

Energy 11.0% 14.1% 19.3% 23.9% 29.0%

Materials 11.0% 14.9% 19.6% 25.3% 30.3%

Telecommunication Services 9.2% 13.3% 17.0% 22.3% 26.1%

Chaffe Model DLOM

Finnerty Model DLOM

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Europe, MENA & Africa

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 11.1% 15.7% 18.7% 26.0% 35.3%

Information Technology 11.5% 16.4% 21.3% 29.7% 38.6%

Utilities 12.0% 16.8% 21.8% 29.8% 42.7%

Industrials 11.0% 15.9% 19.3% 27.7% 37.3%

Consumer Discretionary 11.3% 17.1% 21.5% 30.1% 41.0%

Healthcare 12.1% 17.8% 22.1% 30.6% 41.5%

Financials 10.7% 15.5% 18.7% 28.0% 39.0%

Energy 14.3% 21.1% 28.1% 37.1% 50.1%

Materials 13.3% 19.3% 23.9% 32.3% 46.2%

Telecommunication Services 12.7% 17.1% 20.5% 29.5% 40.9%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.4% 8.9% 10.6% 14.7% 20.7%

Information Technology 6.6% 9.3% 12.0% 16.4% 22.0%

Utilities 6.8% 9.5% 12.2% 16.5% 23.5%

Industrials 6.3% 9.0% 10.9% 15.4% 21.3%

Consumer Discretionary 6.5% 9.7% 12.0% 16.6% 22.7%

Healthcare 6.9% 10.1% 12.5% 17.0% 23.2%

Financials 6.1% 8.8% 10.6% 15.4% 21.6%

Energy 8.2% 11.9% 15.6% 20.1% 26.4%

Materials 7.6% 10.9% 13.4% 17.9% 24.9%

Telecommunication Services 7.3% 9.7% 11.6% 16.4% 22.9%

Chaffe Model DLOM

Finnerty Model DLOM

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Asia Pacific

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Industry / Years 0.25 0.5 1 2 5

Consumer Staples 11.0% 15.4% 18.2% 24.4% 34.6%

Information Technology 12.4% 16.4% 20.8% 28.3% 39.5%

Utilities 10.9% 16.3% 19.6% 26.8% 40.1%

Industrials 11.4% 15.6% 18.3% 25.0% 35.5%

Consumer Discretionary 11.8% 16.5% 19.5% 26.2% 37.4%

Healthcare 13.2% 18.3% 23.0% 31.0% 43.0%

Financials 11.6% 16.7% 19.3% 26.9% 39.9%

Energy 14.4% 20.7% 27.4% 36.2% 49.4%

Materials 12.9% 18.0% 23.2% 31.9% 42.5%

Telecommunication Services 13.4% 20.4% 25.8% 32.9% 48.6%

Industry / Years 0.25 0.5 1 2 5

Consumer Staples 6.3% 8.8% 10.4% 14.0% 20.6%

Information Technology 7.1% 9.4% 11.8% 16.0% 22.8%

Utilities 6.2% 9.2% 11.1% 15.0% 22.3%

Industrials 6.5% 8.9% 10.4% 14.3% 21.0%

Consumer Discretionary 6.7% 9.4% 11.1% 14.9% 21.8%

Healthcare 7.6% 10.4% 13.0% 17.3% 24.1%

Financials 6.6% 9.5% 11.0% 15.3% 23.0%

Energy 8.2% 11.7% 15.1% 19.6% 25.9%

Materials 7.4% 10.2% 13.0% 17.5% 23.6%

Telecommunication Services 7.6% 11.5% 14.4% 18.2% 26.1%

Chaffe Model DLOM

Finnerty Model DLOM

Page 23: Discount for Lack of Marketability - Comphrensive Study

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