The Implied Private Company Pricing Model (IPCPM) Ko = (FCFF1 / P) + g

Business Valuation UpdateVol. 20 No. 3
March 2014
Rod Burkert, CPA/ABV, CVA
Peter J. Butler, CFA, ASA
Robert M. Dohmeyer, ASA

Summary

Editor’s Note: The authors have developed a model designed to be more reliable than the build-up method for estimating the cost of capital of a small privately held business. This model uses the authors’ new Implied Private Company Pricing Line 2.0 (IPCPL ...