How should I search the database? When I conduct a search I find theres not enough content in my industry of interest what do I do?
Below are edited excerpts from Brian Pearsons (the author of the Valuation Advisors Lack of Marketability Discount Study) August 23rd, 2007, teleconference on the use of the Valuation Advisor’s DLOM Study: In some cases, the size of the business or its operating results may be more important than the industry in which the business operates. For lack of marketability and your target company the common thread or the common theme, of course, is the riskier the company, arguably oftentimes over the timeframe, the higher that lack of marketability discount is going to be. And so as you look at your target company, you can look at its profitability especially and search in our database for companies of similar profitability, similar size (revenues or assets), similar industry, and figure out which of those factors, if not all of them, are important, and obviously the search results themselves if it’s in a particular industry that has enough transactions. Or if it isn’t in an industry with a
