How often do entreprenuers succeed at start-up?
Speaking at today’s BVR/Technology Transfer teleconference on IP valuation, Mike Pellegrino says that research shows that first-time entrepreneurs succeed about 20% of the time. Serial entrepreneurs are successful more of the time, but still only about one out of four attempts. The cost of the failures are sunk, he points out…so if you have a [...]
Neil Beaton’s book on valuing early stage companies is due out in December
Neil Beaton tells BVR that the manuscript is in at Wiley, and that they’re fast-tracking the title to get it out in December. You can pre-order Valuing Early Stage and Venture Backed Companies now on Amazon http://www.amazon.com/Valuing-Venture-Backed-Companies-Finance/dp/0470436298/ref=sr_1_1?ie=UTF8&s;=books&qid;=1250788255&sr;=8-1.
On the Origin of Veterinary Practice Valuation
A huge disparity exists within a chain of the animal kingdom: while veterinarians and other animal health specialists have diversified greatly to meet the expansive variety found amongst their patients, appraisers charged with finding the appropriate value of those practices have yet to find such a degree of specialization. Indeed, making sense of practice types, [...]
Pellegrino: “Cost of Capital Models Inadequate”
According to Mike Pellegrino, author of BVR’s soon-to-be-released Guide to Valuing Intellectual Property, “existing methods for estimating the cost of capital for an IP project are inadequate.” Coming at the intersection of two challenging and robust fields – cost of capital (COC) and IP valuation – this bold statement calls into question many cost of [...]
Predicted litigation boom may focus more on audit firms
“Federal class action securities filings began to surge in 2007 with the subprime lending collapse,” begins a new report titled Recent Trends in Securities Class Litigation: A 2009 Mid-year Update, by NERA Economic Consulting. “As the subprime lending meltdown grew into a full-blown credit crisis, the number of filings related to the credit crisis also [...]
Three new resources compare FAS 157 to internat’l standard
The International Accounting Standards Board (IASB) just published three new resources that compare its exposure draft on Fair Value Measurement (issued May 2009) to FASB Statement No. 157, Fair Value Measurements, including: A marked-up version of the text that shows the wording differences between the exposure draft and FAS 157; A table that cross-references paragraphs [...]
PCAOB proposes new engagement quality review standard
The Public Company Accounting Oversight Board (PCAOB) adopted Auditing Standard No. 7, Engagement Quality Review (EQR) last week. “The EQR standard provides a framework for the engagement quality reviewer to evaluate objectively the significant judgments made and related conclusions reached by the engagement team in forming an overall conclusion about the engagement,” says a PCAOB [...]
Restaurant valuations give ‘food for thought’
Restaurant valuations have long been the “bread and butter” of many appraisers, offering a smorgasbord of data and opportunities to consider a rich assortment of inputs and assumptions—including whether “rules of thumb” can ever form the basis for a conclusion or are merely “icing on the cake.” Another easy mis-assumption to make: Similar restaurants in [...]
FASB-IASB financial crisis group issues final report
Continuing our coverage on convergence (or lack thereof) by the international and U.S. financial accounting standards boards—spurred to greater intensity by the current economic climate—last week the FASB-IASB Financial Crisis Advisory Group (FCAG) published its recommendations and final report. “I urge policymakers around the world to study the report and to take note of its [...]
Latest Daubert decision: Don’t ignore critical data
An otherwise “supremely qualified expert cannot waltz into the courtroom and render opinions unless those opinions are based on some recognized scientific method and are reliable and relevant under the test set forth by the Supreme Court in Daubert,” said the federal district court (S.D. Indiana), in the latest decision to consider a financial expert [...]
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