Supply-side ERP more reliable, says Delaware Chancery
In the latest “must read” statutory fair value appraisal from the Delaware Chancery Court, the decision (by V.C. Strine) tackles such critical valuation topics as deference to the market price, determination of the terminal growth rate, historic versus supply-side equity risk premium (ERP), and selection of appropriate beta. In a case that was “largely [...]
Live from NACVA: Tax loss carryforwards add to free cashflow, and change the cost of capital
It makes logical sense that the tax shields provided by tax carryforward losses (TLC) would add free cashflow. Felix Streitferdt argues that “since the carryforward loss has different risk characteristics than operating cashfow, the company’s cost of capital must be adjusted.” In his session on the topic at NACVA in Miami this morning, Streitferdt said [...]
SEC filings essential when analyzing guideline public company comps
There are common errors on the GPCM, as highlighted by Rob Schlegel, speaking at today’s BVR/PitchBook webcast. Obviously, you need to chose matches carefully for size, market niche, characteristics and other factors. ”We see a lot of failures to analyze the data,” agrees Linda Trugman. ”there isn’t enough analysis done and multiples are picked [...]
PitchBook/BVR Guideline Public Company Comps Tool – free CPE webinar today
Join Linda Trugman (Trugman Valuation Associates), Rob Schlegel (Houlihan Valuation Advisors) and John Gabbert (PitchBook) in their discussion of the PB/BVR guideline public company method software, the new tool for performing GPCM analyses. The free webinar is today (Wednesday, May 19th) at 3:00pm-4:00pm ET. One CPE credit is available. Click here for more information.
Trends in Control Premiums: Key Information for BV Experts
Knowing how to recognize and quantify control has been an ongoing debate for appraisers. To help ease the debate, the Appraisal Foundation’s third Working Group and the American Society of Appraisers (ASA) are developing guidelines regarding the assessment, measurement and application of control premiums. “There’s a whole lot more complexity to think about than most [...]
The “bellweather” private equity firm files to go public
BVR’s partner Pitchbook announced this morning that Kohlberg Kravis Roberts has filed to sell $2.2 billion worth of stock in an initial public offering on the NYSE. The sale values the private equity firm at approximately $7.3 billion. Including debt, its value is closer to $9.3 billion. The firm reported an economic net income of $1.48 [...]
CPE: Matthews and Wachter on implied minority discounts
The story of implied minority discounts (IMD) in the Delaware Chancery Court (DCC) raises central discount questions for appraisers: should I adjust public data for minority discounts? How? What do experts–and the courts–say? In fact, the courts and the business valuation profession disagree. This Friday, March 19, learn about the strange history of the [...]
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