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Research

One of our best known studies is our Discount for Lack of Marketability Study, which has been widely referenced in the professional literature and in court case decisions. Below is the latest summary table of that study. We will update this table as more recent years are added to the study.

Summary of Discounts for Private Transaction P/E Multiples
Compared to Public Offering P/E Multiples
Adjusted for Changes in Industry P/E Multiples

Time
Period

Number of
Companies
Analyzed

Number of
Transactions
Analyzed

Standard
Mean
Discount

Trimmed
Mean
Discount*

Median
Discount

Standard
Deviation

197578

17

31

34.0%

43.4%

52.5%

58.6%

1979

9

17

55.6%

56.8%

62.7%

30.2%

198082

58

113

48.0%

51.9%

56.5%

29.8%

1983

85

214

50.1%

55.2%

60.7%

34.7%

1984

20

33

43.2%

52.9%

73.1%

63.9%

1985

18

25

41.3%

47.3%

42.6%

43.5%

1986

47

74

38.5%

44.7%

47.4%

44.2%

1987

25

40

36.9%

44.9%

43.8%

49.9%

1988

13

19

41.5%

42.5%

51.8%

29.5%

1989

9

19

47.3%

46.9%

50.3%

18.6%

1990

17

23

30.5%

33.0%

48.5%

42.7%

1991

27

34

24.2%

28.9%

31.8%

37.7%

1992

36

75

41.9%

47.0%

51.7%

42.6%

1993

51

110

46.9%

49.9%

53.3%

33.9%

1994

31

48

31.9%

38.4%

42.0%

49.6%

1995

42

66

32.2%

47.4%

58.7%

76.4%

1996

17

22

31.5%

34.5%

44.3%

45.4%

1997

34

44

28.4%

30.5%

35.2%

46.7%

1998
14
21
35.0%
39.8%
49.4%
43.3%
1999
22
28
26.4%
27.1%
27.7%
45.2%
2000
13
15
18.0%
22.9%
31.9%
58.5%

* Excludes the highest and lowest of indicated discounts.

Source: Willamette Management Associates.

 


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