An improved Duff & Phelps 2011 risk premium service…
D&P has added a new Risk Premium Calculator to the BVR edition of its 2011 Risk Premium Report. The calculator speeds your cost of capital calculations by screening out all but the relevant data based on the demographics of your subject company–for any valuation date after January 2009 (there’s an option to get the [...]
Two days left to participate in Morningstar’s cost of capital survey
Morningstar is conducting a survey to investigate how appraisers derive cost of capital in their valuations. The survey is only available until 12/17/10 and takes less than five minutes to complete. BVWire will keep you posted on the results from our good friends at Morningstar.
The NY Times plugs the BV profession—and the high quality of middle market private company financial information in Pratt’s Stats
Referring to Inc. magazine’s recent article “2010 Business Valuation Guide” Times blogger Barbara Taylor says “it’s no secret that this is a lousy time to try to sell your business…and main street businesses have been hardest hit.” BVR’s Adam Manson told Taylor that “acquisitions are recovering more favorably for companies with revenues over $5 million.” Manson [...]
Christine Baker joins the Business Valuation Update Editorial Board
Welcome to Christine Baker, a principal at ParenteBeard in New York City. The Editorial Board is a key part of BVR’s efforts to continuously improve BVU, and they work with Executive Editor Jan Davis throughout the year. (It’s not all work…Board members also get invited to all BVR parties…) BVU has recently increased its [...]
Have the last six months changed the business valuation profession?
John Paglia (Pepperdine University), Robert Slee (Robertson & Foley), and the Graziadio School of Business and Management at Pepperdine University just published the results of their ongoing Pepperdine Private Capital Markets Project, a research survey pertaining to privately-held companies and the markets in which they raise capital. BVWire is happy to offer the following snapshot of some [...]
Exclusive from BVR; 2011 Business Reference Guide available now on-line
BVR just received the update to the online Business Reference Guide. Over 72% of all the content has been updated – a very large update indeed. While the print version of 2011 Business Reference Guide, which includes all this new data—will be available on January 1 or so, any appraiser who wants an update on [...]
New articles announced from Journal of Business Valuation and Economic Loss Analysis
Berkeley Electronic Press is pleased to announce the following articles recently published in Journal of Business Valuation and Economic Loss Analysis. Risk-Adjusted Damages Calculation in Breach of Contract Disputes: A Case Study Frank C. Graves, Bin Zhou, Melvin Brosterman, and Quinlan Murphy The Discount for Lack of Marketability in Privately Owned Companies: A Multiples Approach [...]
Great posting on future-looking cost of capital from Rand Curtis
Here’s Rand’s posting on the IBA Blog.
You can’t be too thin…but you can have too large a size premium
Mike Crain is doing some interesting research on the size premium…or lack thereof. One conclusion he’s drawing is that the size premium has all but disappeared since 1981. This by itself is obviously a radical concept for appraisers who are used to taking on several hundred basis points for small stocks. Mike also makes a [...]
Do you use Ibbotson or Duff & Phelps?
Both. That’s the answer provided by Neil Beaton, Stacy Collins (Financial Research Associates), Ron Seigneur (Seigneur Gustafson), and Dave Dufendach at the final “Hardball” session at the AICPA National BV Conference. Dufendach and Beaton, both from Grant Thornton, also include other sources. So, for example, if you’re doing the build-up method, these experts would develop [...]
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