An exclusive BVR survey collected data concerning the research sources experts depend on most when preparing a defensible business valuation report. Here are some of the research tools respondents cited most often:

• Transaction database: DealStats (cited by 72% of respondents, down from 76% in the 2016 survey);
• Risk premium and cost of capital: Cost of Capital Navigator, formerly the Duff & Phelps Valuation Handbook (75%, down from 84%);
• Industry research: IBISWorld (57%, up from 56%); and
• Guideline public-company analyses: EDGAR or EDGAR Online (50%, down from 54%).

The survey also examines research sources used for discounts (marketability, control, and liquidity), compensation, valuation-related case law, and other information required to support a valuation. The survey chronicles the changing scene in research sources since 2011, and it shows that, because of the precedential nature of defending valuations, it takes time for a newcomer in the research marketplace to gain share. Also, some tools became available after the survey was taken. For example, BVR’s platform for estimating the cost of capital, the Cost of Capital Professional, was launched at the end of 2018 and has gained traction.

The survey and analysis is in the BVR Firm Economics & Best Practices Guide, 2019-2020 edition, which is based on responses from over 160 business valuation, forensic, and litigation support (BVFLS) firms collected during September 2018 and October 2018. Data on over 330 BVFLS firm owners/partners and over 1,200 professional staff are included in the management and compensation sections.