DLOM Methodology: A Connected Analytical Framework
The DLOM methodology used by AbbottModelDLOM connects quarter-specific public company evidence with performance evaluation, liquidity measurement, volatility analysis, exchange-option models, Mandelbaum considerations, and professional judgment. The platform forms one identified reference cohort and uses the same companies throughout the analytical workflow.
Each stage remains reviewable. Users can examine the cohort-formation basis, individual reference companies, measurement periods, financial comparisons, liquidity evidence, volatility inputs, model equations, sensitivity results, and professional judgments supporting the analysis.
This connected structure helps the analyst trace the relationship between subject-company inputs, market evidence, model indications, and the final conclusion. The methodology provides analytical organization and market-based reference points; it does not replace investigation, model selection, documentation, or responsibility for the valuation conclusion.
Methodology Areas
- Data Coverage
- Reference Cohort Formation
- Performance Evaluation
- Liquidity Block Size and Total Delay
- Volatility Methodology
- DLOM Models
- Mandelbaum Analysis
- Analytical Transparency
- Professional Judgment and Appropriate Use
- Additional Valuation Applications
How the DLOM Methodology Works
The DLOM methodology follows a consistent sequence:
- Define the valuation context by selecting the market, valuation quarter, industry classification, subject-company size, ownership block, and applicable restriction period.
- Form and lock a quarter-specific public-company reference cohort.
- Evaluate financial performance, trading liquidity, estimated liquidation time, and volatility using that same cohort.
- Apply the relevant DLOM models and organize the Mandelbaum evidence.
- Reconcile the quantitative results with assignment-specific facts and document the analyst’s professional judgment.
Using a consistent cohort across these stages reduces unexplained differences among analytical modules and helps prevent related economic effects from being counted more than once. It also allows a reviewer to reproduce the path from the initial selection criteria through the resulting model indications.
Professional Application
AbbottModelDLOM is intended to support qualified valuation professionals. The analyst must determine whether the selected market, reference cohort, inputs, models, and assumptions are relevant to the subject interest and valuation date.
Professional standards and assignment requirements remain applicable to every use of the platform. The International Valuation Standards provide broader guidance concerning valuation data, inputs, models, documentation, and reporting.