Pellegrino: "Cost of Capital Models Inadequate


According to Mike Pellegrino, author of BVR’s soon-to-be-released Guide to Valuing Intellectual Property, “existing methods for estimating the cost of capital for an IP project are inadequate.” Coming at the intersection of two challenging and robust fields – cost of capital (COC) and IP valuation – this bold statement calls into question many cost of capital assumptions and techniques. In response, Pellegrino has developed and field tested his own model, which captures areas neglected by other models: target rate of return, success rate of getting IP to the market, investment holding period, and associated expenses.

On Thursday, August 20 this model will be examined in thorough detail by COC expert Neil Beaton and IP expert Rob Schlegel in “An IP Cost of Capital Estimation Model,” a BVR teleconference. After Pellegrino’s presentation of this model, Beaton and Schlegel will challenge his claim that it works for “any IP at any stage of development.”

This 100-minute presentation begins at 10:00 am PT/1:00 pm 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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