The Pluris DLOM Database begins where other databases end. With over 3,000 transactions, it is so much easier to find transactions in entities comparable to your subject entity and “perform your own study” instead of relying on the studies of other analysts, sometimes performed decades ago. It contains hundreds of transactions from the past couple of years alone, which is more than 10 times as many as other DLOM databases of restricted stock transactions. If there is one thing we have learned from the Service in recent years, it is that they are always interested in seeing the most updated research and data.
Instead of manually searching for restricted stock transactions on the internet, Edgar, etc, the Pluris DLOM Database starts with the PrivateRaise database, which is constructed for investments bankers, deal lawyers, issuers, investors and other participants in the market for privately raised equity of public companies. This ensures the completeness of the database.
Unlike other databases, the Pluris DLOM Database includes restricted stock transactions both with and without warrants attached. We have been able to include transactions where the deal includes both restricted stock and the warrants that are often included as “sweeteners” (and thus are part of the marketability discount) by drawing on the Pluris LiquiStat™ databases, which include warrant transactions. We know from experience, and our research, that the Black-Scholes or other theoretical models all tend to overvalue such warrants, often by very significant margins. Using the LiquiStat data, the Pluris DLOM Database is able to determine the value of restricted stock private placement transactions with warrants attached. Including these transactions not only increases the total number of transactions, resulting in more accurate discounts, but provides the appraiser with a much wider range of companies and industries to analyze.
For additional details on the search and inclusion criteria of the database, please see the ValuSource website.