The Myth:
Only minority interests require a discount for lack of marketability (DLOM).

The Reality:
Even controlling interests in private companies lack liquidity. Buyers still face risk and time hurdles when selling private businesses — control doesn’t erase marketability challenges.

Why It Matters:
Ignoring DLOM can materially overstate the value of a privately held business — risking flawed loans or deals.

Practical Tip:
Apply DLOM thoughtfully, considering liquidity risks even for majority stakes.