Adjusting multiples—key to understanding the guideline company method

BVWireIssue #47-5
August 30, 2006

Tremendous advances have taken place in the area of adjusting multiples from public company comparables for use in the guideline company method. As reported in the latest (September) issue of the Business Valuation Update™, the ASA has recently incorporated these modifications into its ASA Standards Guidance as well as its BV201N and BV203N course materials. New research has led to improvements in the Mercer Methodology as well as the more traditional models in the BV “Bible”: Valuing a Business, by Pratt, Reilly, and Schweihs (fifth edition to be released early next year).

To stay on top of all the changes, register for Adjusting Multiples from Guideline Public Companies, BVR’s next telephone conference on August 31, 2006, moderated by Shannon Pratt and featuring “real life” case studies by Alina Niculita, CFA (Shannon Pratt Valuations); and Tim Lee (Mercer Capital). To register, click here.

Please let us know if you have any comments about this article or enhancements you would like to see.