Got a guideline public company method analysis in your future?
BVR has just negotiated a 75% price discount with our partner for software to speed up the increasingly time-consuming steps involved in doing a public company comparables analysis. The BVR/PB Public Company Comps Tool (PCCT) will be available for $995 for a single user license starting this week–for all new accounts and renewals. Since nearly every [...]
Don’t make a ‘fruit salad’ of your GPCM
It’s not enough to read the 10K financial statements of potential comparable companies when using the Guideline Public Company method (GPCM) in valuing a private company interest, Linda Trugman (Trugman Valuation Assoc.) reminded AICPA attendees in Las Vegas. You’ve really got to dig into the available data on your guideline company comparables to make an “apples [...]
What’s the future role of the guideline public company method in US Tax Court?
“Some people think that REvenue Ruling 59-60 is biased toward the market approach,” says Judge David Laro. “But I happen to prefer the discounted cashflow methods. The reason: you can find similarities between comparable companies, but opposing counsel can also always find differences between the same companies. This makes me uncomfortable and I wouldn’t [...]
Pitchbook report: what is the standard of value when the most likely acquirer is another private equity firm?
BVWire has made several cautionary comments about the fact that so much of the supposed increase in deal activity is PE firms selling assets to other PE firms. Appraisers might question whether the prices paid, and deal structures, have much in common with “fair market value” as we know it from 59-60, USPAP, and SSVS-1. [...]
More power to the Public Stats subscriber
Public Stats at BVMarketData has just added even more functionality to its search engine. In response to user requests, visitors and subscribers can now search the over 2,800+ public company acquisitions by the buyer and seller names. In addition to the buyer and seller information, subscribers also gain access to five valuation multiples, an income [...]
Free download on DE Chancery rejection of weak GPCM and company-specific risk
Two brothers inherited a large, closely held company from their father. One took active control and 70% of the shares; the other enjoyed his 30% interest over his lifetime, but when he died, distributed his shares to over 165 outsiders. Not surprisingly, the controlling brother authorized a reverse stock split to effectively “squeeze” out the [...]
PitchBook Receives CODiE Award for Best Financial/Market Data Information Source
PitchBook Data, Inc. won two CODiE awards earlier today from the Software & Information Industry Association—the first recognizing their financial research products as the best on-line Financial/Market Data Information Source. The SIIA’s CODiE awards are the highest honor bestowed by the software industry to its member firms. PitchBook’s second award compared the private-equity focused firm [...]
In 2011, will the definition of “willing buyer” change?
Here’s an interesting factoid reported today from Pitchbook about deals in 2010–and, as we’ve all noticed, more and more of them are private equity firms buying from private equity firms: Secondary transactions, or sales from one PE investor to another, have exploded this year. So far in 2010, there have been 121 completed secondary transactions, according [...]
Direct from DE Chancery: Use more than one valuation method
Like so many of the statutory appraisal/entire fairness cases in the Delaware Chancery Court, In re Hanover Direct, Inc. Shareholders Litigation (Sept. 24, 2010) came down to a “battle of experts,” writes Chancellor Chandler in a recent letter opinion. “Unlike most of these cases, however, this decision turns entirely on the fact that one expert’s [...]
“As of” date added to BVR GPCM tool
Appraisers can now pick valuations dates back to 2000 when using the BVR/Pitchbook Guideline Public Company Comps Tool. The upgrade was announced this morning by Randy Cochran, VP-Development at BVR. ”This enhancement has been one of the most important to our business valuation test team, and customers, and we’ve worked closely with the analysts and [...]
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