Here’s what you’ll see:

• The Implied Private Company Pricing Line 2.0 (Bob Dohmeyer, ASA; Pete Butler, CFA, ASA; and Rod Burkert, CPA/ABV, CVA). A new approach designed to eliminate the inherent problems in comparing public and private data and be more reliable in estimating the cost of capital for a privately held business.

• Latest LEAPS Study Sheds Light on Company Size and DLOMs (Ronald M. Seaman, FASA). It is well accepted by now that company size and likely holding period affect the size of the discount for lack of marketability (DLOM)—but by how much? Analysis of LEAPS put options helps to answer this.

• The Best Valuation Mechanism for Buy-Sell Agreements. Chris Mercer (Mercer Capital) explains how to craft the most effective valuation mechanism for buy-sell agreements at closely held firms.

• Six Reasons Why Private Firms Need You to Do an Annual Valuation (Robert M. Clinger III, CBA, CVA, LIFA). Reaching out to clients about the benefits of doing an annual valuation can yield a substantial amount of recurring business.

To read these articles—plus a digest of the latest court cases—see the September issue of Business Valuation Update.