An older concept but one which could fit beautifully into some of these options is the discount for lack of control or marketability, which could be carefully used to further enhance a transfer.
What does DLOC stand for?
DLOC stands for Discount for Lack of Control (finance)
This definition appears very rarely and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of DLOC
We have 5 other meanings of DLOC in our Acronym Attic
- Dental Laboratory Owners Association of California
- Descriptive List of Applicable Publications
- Daimler and Lanchester Owners' Club (UK)
- Decreased Level of Consciousness
- Delivered Lines of Code
- Deros Lock on Control (gun mounting system)
- Diablo Light Opera Company (California)
- Digital Library of the Caribbean
- Directed Level Of Capability
- Disaster Loan Outreach Center
- Division Logistical Operation Center
- Duty Location
- Defence Lines of Development (UK)
- Dynamic Level of Detail
- Denver Lyric Opera Guild (Colorado)
- Discrete Logarithm (mathematics)
- Division Logistics System
- Division Logistics System Property Book
- Douglas Library Of Hebron (Hebron, CT)
- Demon Lord of Karanda (book)
Samples in periodicals archive:
On their federal gift tax return, each reported the value of their 50% undivided interest at a 30% discount for lack of control and lack of marketability.
In some cases, discounts for minority interests and lack of marketability can be 25% or more (for a recent example of a large family farming operation successfully claiming a 25% discount for lack of marketability and a significant discount for lack of control, see Litchfield v Commissioner, TC Memo 2009-21).
A boundary condition for lack of control is a typical limited partner in a large public partnership, where the discount for lack of control might be, say, 35%.
Of these, the most common valuation adjustments fall into two categories: (1) discount for lack of control and (2) discount for lack of marketability.
No discount for lack of control is necessary because cashflow capitalized or discounted is the amount available to the minority owner; therefore, the result is a minority value.
DISCOUNT FOR LACK OF CONTROL The discount for lack of control (DLOC--also referred to as a minority discount) is usually quantified by comparing the trading price of shares of publicly traded, closed-end investment funds to the net asset value per share of the same funds.
Marketability Influence The discount for lack of control derived from limited partnership data has a problem: It incorporates a marketability element [ILLUSTRATION FOR FIGURE 2 OMITTED].