Have the last six months changed the business valuation profession?

John Paglia (Pepperdine University), Robert Slee (Robertson & Foley), and the Graziadio School of Business and Management at Pepperdine University just published the results of their ongoing Pepperdine Private Capital Markets Project, a research survey pertaining to privately-held companies and the markets in which they raise capital.

Of the 271 survey business appraiser participants, the majority expect an increase in the number of engagements, business confidence and business conditions over the next 12 months. BVWire is happy to offer the following snapshot of some key factors specific to the appraisal profession.  This compares to similar data from Paglia and Slee’s project we reported here six months ago.

Comparison: Today Versus Six Months Ago

Decreased About same Increased
Number of engagements 16.1% 26.2% 57.8%
Fees for services 18.7% 61.6% 19.7%
Time to receive payment for services 9.8% 62.0% 18.3%
Size of your BV department 5.4% 76.1% 18.6%
Cost of capital 20.9% 43.7% 35.4%
Market (equity) risk premiums 20.5% 56.1% 23.4%
DLOMs 10.7% 76.7% 12.7%
Company specific risk premiums 11.2% 67.3% 21.5%
John Borrowman (Borrowman Baker LLC) also provided insights on the current state of the BV profession in last week’s ASA E-Letter:
  • “Of all the service areas, litigation support has probably remained the strongest”
  • “Congress has reintroduced certainty into the world of estate planning, and brought clients back onto the playing field”
  • “Valuation work driven by the return of merger and acquisition activity is another factor contributing to the return of confidence”