Valuation
Discount for Lack of Control (DLOC)
A valuation discount applied to minority interests in private companies to reflect their inability to direct the company.
DLOC (also called minority discount) reflects that a non-controlling owner can't unilaterally direct the company — can't force a sale, set dividend policy, or change strategy. Typical range is 15–25%, derived from the inverse of control premiums seen in public-company acquisitions.
DLOC applies to minority interests being valued. It does not apply to controlling interests or 50/50 partnerships where neither partner has unilateral control.
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