Methodologies
Our model is conceptually consistent with methodologies developed by Mercer," Finnerty,07 Stockdale," Dyl et a109 and Seaman.5°
The Quantitative Marketability Discount Model ("QMDM") has been developed by Mercer ... explicitly address the incremental risk premium required by investors for the timing
uncertainty. Dyl applied an options-based framework developed by Longstaff52 based on Longstaff's insight that liquidity ... cost of illiquidity can therefore be estimated using techniques from
options-pricing theory. The Dyl model incorporates stock price volatility and length of the restriction period in determining the
Mercer