New model captures IP cost of capital

BVWireIssue #83-2
August 12, 2009

In BVR’s soon-to-be-released Guide to Valuing Intellectual Property, author Mike Pellegrino takes aim at current cost of capital (COC) models and their ability to capture the critical factors in pricing intellectual property (IP) projects. Specifically, Pellegrino examines how the existing models may not fully or accurately account for factors such as: the target rate of return on the investment; the success rate of getting the IP to the market; the holding period for the investment; and the expenses associated with the holding period, including managing and marketing the IP.

In response to these highlighted shortcomings, Pellegrino has developed and field-tested a new, COC estimation model specific to the valuation of intellectual property and similar intangibles.  For a thorough scrutiny and review of the new model, join two well-known COC and IP experts, Neil Beaton and Rob Schlegel, for “An IP Cost of Capital Estimation Model,” a 100-minute teleconference hosted by BVR on August 20, 2009. During the presentation, Pellegrino will introduce and showcase his model before Beaton and Schlegel test his claim that it works for “any IP at any stage of development.”  The teleconference begins at 10:00am PT/1:00pm ET.  Two CPE credits are available for attendees, as well as a special discounted price on BVR’s Guide to Valuing Intellectual Property. For more information and to register, click here.
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