Discount for Lack of Marketability (DLOM)

DLOM reflects that private company shares can't be quickly sold — there's no liquid market. Typical DLOM ranges from 15–35% depending on factors like profitability, dividend policy, transfer restrictions, and expected holding period.

DLOM is supported empirically by pre-IPO studies, restricted-stock studies, and option-pricing models. It's heavily scrutinized by the IRS for estate and gift purposes.