An alternate approach to estimating the cost of capital for a privately held business will be presented at NACVA’s conference in Pittsburgh September 14-16. Bob Dohmeyer will conduct a session on the implied private company pricing line (IPCPL), which is designed to eliminate the inherent problems in comparing public and private data. Dohmeyer is one of the developers of IPCPL, along with Pete Butler and Rod Burkert.
Dr. Herbert Kierulff, Snellman Professor of Entrepreneurship and Finance at Seattle Pacific University, recently commented on the new method. “IPCPL represents a groundbreaking advance in valuation and should be a part of the curriculum of every valuation course,” says Dr. Kierulff. “It has significant research potential with far reaching implications for pass through tax problems, company specific risk, capital structure decisions, and liquidity issues."
The Pittsburgh conference will focus on business valuation, including valuing family limited partnerships, BV foundations, and BV leading-edge topics. There will be two keynotes: one on growing your practice (by Lee Frederiksen) and one covering updates of industry standards (by Robert Grossman and Mark Kucik). For more information and to register, click here.
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