Pre-IPO Studies
Empirical DLOM studies measuring the discount at which a company's last private-round shares price versus its IPO price. Emory studies (1985-2002) and Willamette Management Associates studies typically show 30-40% discounts; the discount captures both the marketability premium of the IPO and the time-value-of-money over the period from private-round close to public listing. Used alongside restricted-stock studies as the empirical anchor for DLOM defense, particularly in valuations of companies with credible near-term IPO paths.
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Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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