Business Valuation Update
- How to Review a Report’s Valuation Methodology
- Ideas for Solving Two Problems in the BV Profession
- How Do Your Firm’s Benefits Stack Up?
- Using Rule of Thumb Data to Uncover Cooked Books
A resonable range for the company specific premium
In your Guest Article (July 2003) relating to a “SWOT” model for quantifying the company-specific risk premium, the authors refer to the relevant portion (of the total cash flow discount rat ...
Dr. Bajaj responds to Dr. Pratts February 2002 Editorial: Bajaj attacks restricted stock and pre-IPO discount studies; Pratt replies, defending studies, notes that debate may be semantic
In the last issue, Dr. Shannon Pratt critiqued my co-authored paper, Firm Value and Marketability Discounts, forthcoming in Journal of Corporation Law . 1, 2 I would like to take this op ...
Follow-up to “layered discounts” question
I agree with Dr. Pratt’s response to Kimberly Beaucort’s question about “layered discounts” in the July 2003 issue (page 13, bottom right corner ...
Schilt Cap Rate Method
An opposing expert in a case says Shannon "endorses" the Schilt capitalization rate method from the 6/92 Business Valuation Review . I find no mention of the method in Valuing a Business ...
Reality Check: Testing Valuation Conclusions For ‘Fool’s Market Value’
Editor’s note: This article emerged from a series of subscriber exchanges in the BVWire™ (beginning with issue #59-5) on the interpretation and application of the fair market value standard—in which the author first posited an alternative: “fool’s market ...
Alternative Equity Risk Premium measures unstable; lack robust predictive power Part 2 of 2 parts
Last issue we reported on controversy about the current level of the Equity Risk Premium, as debated at Ibbotson Associates’ first ever Cost of Capital and Equity Risk Premium conference held in Chicago June 5 and 6. The most commonly used estimate of the equity risk premium as a component of the required rate of return (discount rate) is the actual realized historical average over some time period. However, some have attempted to measure the ...
Cost of Capital Options Increase As ERPs Remain Stable
There no longer seems to be any debate about which study of U.S. historic capital markets is “definitive.” Now that 2007 updates are available to both Morningstar/Ibbotson’s Stock, Bonds, Bills, Inflation® (SBBI) Valuation Edition Yearbook and Duff ...
Discounts for Lack of Marketability: Answering Your Latest Questions
BVResources’ recent telephone conference on discounts for lack of marketability (DLOM) inspired several questions that the panelists couldn’t get to during the allotted time.
Grabowski to Appraisers: Read More than Just the Back Page of Ibbotsons
In this exclusive interview, Roger Grabowski, ASA (Duff & Phelps, Chicago) discusses the recent Risk Premium Report (RPR) update, its strengths as well as its weaknesses, and plans for future expansion.
Ibbotson relaunches its Cost of Capital Workshop in 2003
The 2003 Cost of Capital Workshop took place on June 20, 2003, at the University of Chicago's Gleacher Center.
Evidence suggests Equity Risk Premium lower than conventional wisdom thinks: Part 1 of 2
On June 5 and 6 Ibbotson Associates held their first-ever Cost of Capital and Equity Risk Premium Conference (as distinguished from their Cost of Capital Workshop, described in the sidebar on page 4).
ICBC 27th Annual National Conference
One of the most interesting presentation at the Institute of Certified Business Counselors 27th Annual National Conference ...
Valuing Community Newspapers: Small Publications’ Success Fuel Opportunities for BV Experts
Stories of “doom-and-gloom” in the world of large newspapers are now common. The Star-Ledger, New Jersey’s largest newspaper, cut its newsroom staff by 40 percent last October. The New York Times reported that the cuts were “one of the largest reductions ...
Excellent speakers and varied topics at the AICPA’s 2004 business valuation conference (Part 2 of 5)
The AICPA’s 2004 National Business Conference took place at the JW Marriott Orlando Grande Lakes Resort in Orlando, Florida (November 7-9, 2004).
Quantifying Company-Specific Risk: The Authors Answer Your Questions
Note: Keith Pinkerton and Peter Butler’s recent article “Quantifying Specific-Company Risk: A New Empirical Framework” (Feb. 2007 BVU), followed by a BVR telephone conference in March, sparked a lively debate and numerous questions from our well-informed ...
2001 ASA International Appraisal Conference, part 2 of 2
The American Society of Appraisers annual multidisciplinary conference was held in Pittsburgh, Penn., July 23-25. The theme of the conference was "Build New Bridges into the Millennium," given that th ...
New competition causes stock to plunge
In this article, Mozette spotlights a real-life example of the effect of one of the risk factors we warn about in our books (see sidebar below). This article certainly demonstrates the possible effect ...
ASA Advanced BV Conference: Lots of options (Part 3 of 4)
The American Society of Appraisers’ 23rd Annual Advanced Business Valuation Conference, held at the Marriott River Center in San Antonio, Texas, October 7-9, 2004 covered the gamut of BV topics, from options valuation and FASB’s proposed fair value rules ...
IBA Conference
n The court appointed expert Darrell V. Arne, CBA, ASA, CPA, CBI Arne & Co. Albuquerque, NM Darrell emphasized that there is a demand for court-appointed experts, courts and litig ...
ASA Advanced BV Conference: Lots of options (Part 4 of 4)
The American Society of Appraisers’ 23rd Annual Advanced Business Valuation Conference, held at the Marriott River Center in San Antonio, Texas, October 7-9, 2004 covered the gamut of BV topics, from options valuation and FASB’s proposed fair value rules ...
AICPA BV ‘Hardball’ Panel Calls for the End of ‘It Depends’
Some of the toughest questions facing business appraisers today flew at the “Hardball with Hitchner” panel assembled at the annual AICPA National Business Valuation Conference in New Orleans Dec 2-4. Moderator Jim Hitchner (Financial Valuation Group) al ...
ASA and CICBV join forces for the 5th Joint Advanced BV Conference in Orlando
Part 1 of 2 Evolution and outlook for the north American securities market Mark E. Lackrit Securities Industry Association Washington, D.C. This presentation given by the pr ...
ASA International Appraisers Conference Presentation Summaries
n Discount Settlements on Recent Family Limited Partnership Cases Curtis Kimball, ASA, CFA Willamette Management Associates Curtis Kimball discussed the increasingly popular medium for e ...
Markets awash in capital for private equity financing
The Institute for International Research presented a new conference, "Financing Privately-Owned Middle Market Companies," in Atlanta Jan. 25-26. Although the conference was poorly attended, there were ...
The 2002 AICPA BV National Conference brings lively debates, "dueling experts," and point-counterpoint sessions - part I
The 2002 AICPA National Business Valuation Conference took place in New Orleans, November 17-19. During the two days of education, the conference brought together great speakers and a wealth of time ...