DLOM is the commonly used abbreviation for discount for lack of marketability, a valuation adjustment applied to interests in closely held businesses or other illiquid assets to reflect the difficulty of selling them quickly for full value. The acronym appears frequently in appraisal reports, legal documents, and planning discussions. While shorthand, DLOM still rests on the same empirical studies, company-specific factors, and regulatory scrutiny that govern formal marketability Discount calculations in estate and gift tax valuations.

Advisors and attorneys refer to DLOM when reviewing valuation reports for family limited partnerships, closely held stock, and other nonmarketable interests that are being gifted, sold, or used to fund buy-sell arrangements. They ensure that underlying assumptions are well supported and defensible in potential IRS challenges. Planners may strategically use DLOM, along with discounts for lack of control, to reduce reported gift values and maximize transfers within exemption limits. Understanding DLOM as an acronym helps advisors communicate efficiently with valuation experts while staying grounded in the underlying concept.