Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
Good News: Key Research on Private Cost of Capital Is Back
On the brink of ending its long run, the Private Capital Markets Project from Pepperdine University has secured funding to continue its ongoing survey of expected rates of return of providers in the private capital market.
New Pepperdine Report Creates Buzz at the NACVA Conference
One of the more well-attended sessions at the Business Valuation & Financial Litigation Super Conference hosted by the National Association of Certified Valuators and Analysts (NACVA) was a session Dr. Craig R. Everett conducted. He is the project director of the Private Capital Markets Project from Pepperdine University, which does an ongoing survey of expected rates of return of providers in the private capital market.
Has the Tax Court Become Hostile to Appraisers? Will Ibbotston’s Become Obsolete by Next Year?
For the second year in a row, the Institute of Business Appraisers has held a sold-out, symposium-styled national gathering, informal and yet highly informative. This year’s IBA Symposium in Denver offered two-tracks, limited registration, and four-hour ...
Private Cost of Equity Up, Per 2023 Pepperdine Report
Private-company cost of equity is higher this year across nearly all categories, by about 5%, according to the 2023 Private Capital Markets Report. “This translates to an average of 25% this year, up from 20% last year,” says Dr. Craig R. Everett, the project’s director. The article also demonstrates how to use the report for developing private-company cost of capital.
Appraiser Shuns Public Data for Private Cost of Capital
One appraiser has done hundreds of valuations of small owner-operated firms by looking to private capital markets to estimate cost of capital. This eliminates the need to make all of the many assumptions and adjustments to convert data from actively traded stocks into proxies for private-company valuation.
Appraiser Uses Direct Way to Estimate Private-Company Cost of Equity
One appraiser, after 25 years and over 1,000 valuations of small owner-operated businesses, says that these firms bear no relation to public companies, so why look to the public markets for data when estimating cost of capital? Here’s the method he uses, which looks directly at the private capital markets and does not require any expensive resources.
BV News and Trends July 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends March 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends October 2022
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends September 2020
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends March 2019
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends March 2024
A monthly roundup of key developments of interest to business valuation experts.
Letter to the Editor: Comments on the Cost of Capital Professional
A user who tested out BVR’s new platform for estimating the cost of capital has some very thought-provoking comments on the use of historical data for the equity risk premium.
BV News and Trends May 2021
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends May 2019
A monthly roundup of key developments of interest to business valuation experts.
BVU News and Trends June 2018
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends March 2023
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends April 2024
A monthly roundup of key developments of interest to business valuation experts.
COE Estimates From Leading Data Sets Are All ‘Very Close’
Jim Hitchner conducted a hypothetical engagement using Kroll’s Navigator, BVR’s Cost of Capital Professional, the Pepperdine study, and Damodaran’s data to estimate cost of equity (COE).
BVU News and Trends December 2018
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends August 2022
A monthly roundup of key developments of interest to business valuation experts.
BV News and Trends September 2022
A monthly roundup of key developments of interest to business valuation experts.
Looking to Private Markets for Private Firm Cost of Capital
Some valuation experts are not comfortable with the theory that public-company data can be substituted for private value. They see some financial theory risks to the standard valuation process of applying a myriad of judgments and assumptions to convert m ...
Should a Private Cost of Capital Method Replace CAPM and BUM?
Most appraisers recognize the judgments and assumptions built into the process of converting measurable public market data into proxies for private company valuation. Capital asset pricing needs to be “modified” with a series of adjustments to the cost of ...
BV News At-a-Glance
A monthly roundup of key developments of interest to business valuation experts.