DeJoy & Co.’s Business Valuation Practice Announces Quantitative Model

DeJoy & Co.’s Business Valuation practice is proud to announce the rollout of their proprietary quantitative discount for lack of marketability (DLOM) model. DeJoy’s Quantitative Model is based on 4,700+ restricted stock transactions since 2001 across a range of industries. "DLOM is such a core assumption of any valuation, whether it is in a trust & estate context, a buy-sell agreement, or litigation. Our proprietary quantitative model puts us on a very short list of firms, it is truly the gold standard in our industry" said Anthony Venette, CPA/ABV. 

DeJoy’s Quantitative Model was created after a thorough review of numerous Tax Court and other court cases. The model addresses the most common issues raised by courts and gives DeJoy’s dedicated business valuation professionals the ability to proactively address them. Specifically, the model allows for an enhanced focus on recent data and industry-specific data.

Based on the widely used and accepted two-stage DLOM approach using Restricted Stock Equivalent Discount ("RSED") and Private Equity Discount Increment ("PEDI"), DeJoy’s model enhances this with increased granularity and supportable, quantitatively adjusted data. Venette further added, "For a long-time, our industry operated on a simplistic qualitative method, which was replaced by a quantitative method that relied on stale and weak data, we believe our enhanced approach is the next step in this evolution and the cutting-edge."

At DeJoy, our team of experienced valuation professionals has a proven track record of delivering comprehensive, reliable, and defensible valuations that can help businesses and individuals make informed decisions. Whether you’re looking to sell your business, transfer ownership to the next generation, or navigate tax implications, DeJoy’s valuation practice can provide you with the insights and expertise you need to achieve your goals.