The Market Participant Acquisition Premium

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Training Event Transcripts
October 16, 2014
Travis W. Harms, CFA, CPA/ABV

Summary

In April 2013, The Appraisal Foundation introduced a new term to the business valuation vernacular: the market participant acquisition premium (MPAP). Created to "emphasize the importance of the market participant perspective when measuring fair value, and to distinguish this premium from the more general (and occasionally controversial) notion of the control premium," the MPAP includes considerations for risk, goodwill, and other valuation staples. Part 10 of BVR's 2014 Online Symposium on Fair Value Measurement features expert Travis Harms, a member of the working group whose discussion draft generated the term MPAP, on the creation of this new concept, its implementation, and its utilization.
The Market Participant Acquisition Premium
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