The Ackerman case prompted a lively debate on the quality of data generally available to business valuation professionals for goodwill and other determinations, including discounts and capitalization rates. “The use of raw medians is the first no-no,” observed Ron Seigneur. Concurred co-presenter Bob Duffy (Grant Thornton, LLP, Seattle), “You outrun your data very quickly. This is the real difficulty of these cases.”
A participant asked attendees what data they relied on most often. As BVR had just finished compiling its 2007 Business Valuation Firm Economics & Best Practices Survey, we were able to offer the “Top Ten” research sources used by responding BV practitioners (below). Notably—although courts have recently criticized RMA® (Risk Management Association) studies, they rank number four. Ibbotson’s SBBI is still number one, while Duff and Phelps’ Risk Premium Report just misses the list by taking the eleventh spot.
To pre-order your copy of BVR’s full survey—which will be ready by mid-February, click here.
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