Cost of Capital Professional

The new Cost of Capital Professional platform provides business valuators and analysts Equity Risk Premiums, Size Premia, Risk Free Rates and an online calculator (with data similar to the original Ibbotson SBBI data).  This state-of-the-art resource provides a simple and transparent way to estimate cost of capital. Users can take advantage of:

  • Simplicity—The Cost of Capital Professional gives you a single cost of equity number for your risk premium questions, so you don't have to spend a lot of time explaining your methodology choices to clients—or judges.

  • Credibility—The Cost of Capital Professional platform relies on the CRSP (Center for Research in Security Prices) market return data set. This is the most respected and widely-used basis for 10-decile returns in practice and academia.

  • Transparency—You will always see the components of your cost of capital, and the ERP and size premia you need for your target company. You can also add industry and unsystematic risk inputs from other sources to arrive at the appropriate cost of equity.

Free Webinar: Be sure to join Michael Crain and Ron Seigneur on November 20th for a free webinar on the new Cost of Capital Professional platform.  Reserve your space >>

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Categories: cost of capital


Harness the platform with:

 

  • Replicability—Valid evidence supporting your claims should be reproducible. If it is not reproducible, it could be argued as coincidence.  The Cost of Capital Professional platform offers an independent calculation of the market returns. Can you afford to not have proof of replication?  

  • Reliability—Rule 702 requires testifying experts use reliable methods and principles. The use of CRSP data has stood the test of time.

  • Flexibility—Unlike other sources, you have control over the time period of historical return data for your analysis. You can choose which time horizon (e.g. specific historic years) that is appropriate for your case.The data goes back to 1928.

  • Accuracy—The Cost of Capital Professional platform is based on the same finance theory used in the original SBBI series.It's prepared by Dr. Michael Crain, a nationally recognized practitioner and educator on equity risk premia and size premia analyses.

  • Objectivity—BVR is a publisher and not affiliated with any financial institution, so you can be sure our methodologies and results are independent and objective, as expected by courts, Internal Revenue Service, and professional standards of practice such as USPAP, IVS, and VS100 (SSVS-1).

  • Comprehensive—For Build up Method and MCAPM analyses.

Article Downloads

Cost of Capital Platform BVU Article   Have We Lost the Forest For the Trees Article  Cost of Capital Professional Bibliography

Advisory Board


Rod BurkertRod Burkert, CPA, ABV, CVA

Rod is a Business Valuation Expert and a Practice Development Coach. He is the founder of Burkert Valuation Advisors, where he has been practicing solo since July 2000. His traditional practice assists individuals, businesses, and attorneys determine or resolve questions of value. He also coaches overwhelmed BVFLS professionals to find more "margin" in their practices and their lives so that they can create the experiences that matter most to them. And by leveraging social media and his professional network, Rod has built a mobile consulting practice that allows him to travel full-time throughout the United States and Canada in an RV with his wife and their two dogs. He was named a “Pioneer of the Profession,” as part of the NACVA's Industry Titans awards at their June 2016 Annual Conference.


Dr. Michael CrainDr. Michael A. Crain, CPA/ABV, CFA, CFE

Michael A. Crain (Florida Atlantic University) of Boca Raton, Florida is both an academic and a practitioner. Mike received his Doctor of Business Administration (finance) degree from Manchester Business School in England at the University of Manchester. He has been a licensed CPA and practitioner for over 30 years and holds several certifications in valuation: Accredited in Business Valuation (ABV) from the American Institute of CPAs and the designation of Chartered Financial Analyst (CFA) from the CFA Institute. He also holds the designation of Certified Fraud Examiner (CFE) from the Association of Certified Fraud Examiners. Mike is a past chairman of the AICPA’s Business Valuation committee and has been inducted into the AICPA Business Valuation Hall of Fame. He is a recipient of AICPA's Lawler Award presented by Journal of Accountancy for best article of the year and AICPA’s Sustained Contribution Award.

In addition to his work in teaching and director of FAU’s Center for Forensic Accounting, Mike consults with clients and is senior advisor to Miami-based Kaufman Rossin. In his consulting. Mike works largely in the areas of business/economic damage measurement, valuation of businesses and financial assets, and forensic accounting. He has served as a consulting and testifying expert in many commercial cases working for both plaintiffs and defendants in state and Federal courts. He has also served as an arbitrator in commercial damages and minority shareholder cases and as a court-appointed accountant. Moreover, Mike has previously worked in the auditing and consulting areas in public accounting firms including an international firm where he was a senior manager

Nancy FannonNancy J Fannon, CPA, ASA, MCBA

Nancy J. Fannon is the Business Valuation & Litigation Services Leader at Marcum, LLP.  Ms. Fannon has over 30 years of valuation and damages experience, and is frequently retained to provide expert witness services relating to the value of a business, or an opinion on the amount of financial damages related to breach of contract, tort, or intellectual property matters. Ms. Fannon is a frequent local and national speaker on the topics of business valuation and damages, and has served as an editorial board member for several national valuation and financial expert journals.  She has written, contributed to, and technically reviewed several valuation and commercial damage textbooks, including Taxes and Value:  The Ongoing Research and Analysis Relating to the S Corporation Valuation Puzzle. The fifth edition of her most recent book, The Comprehensive Guide to Economic Damages, was published in 2018.


Adam MansonAdam Manson

Adam Manson is the Director of Valuation Data at Business Valuation Resources, LLC, a firm that provides data and tools to business appraisers. Adam oversees the various data products offered by BVR, including Pratt’s Stats, Business Valuation Resources’ flagship data offering. Adam has been with Business Valuation Resources for 14 years. He holds a bachelor's degree in finance from Seattle Pacific University and an M.B.A. from Portland State University.


Jim HitchnerJames Hitchner, CPA/ABV/CFF, ASA

Jim Hitchner is managing director of Financial Valuation Advisors www.finvaluation.com and is president of The Financial Consulting Group www.gofcg.org. He is also CEO of Valuation Products and Services (VPS) www.valuationproducts.com.
             
Mr. Hitchner is editor/coauthor of the books the Hitchner Pratt Fishman Consensus View Q&A Guide to Financial Valuation and the VPS DLOM Guide and Toolkit, published by VPS. He is also editor/coauthor of Financial Valuation Applications and Models (FVAM), fourth edition; Financial Valuation Workbook (FVW), fourth edition; and Valuation for Financial Reporting: Fair Value, Business Combinations, Intangible Assets, Goodwill, and Impairment Analysis, third edition, all published by Wiley. He is also coauthor of PPC’s Guide To Business Valuations, 28th edition, published by Thomson Reuters.  FVAM and FVW have been adopted by the American Institute of Certified Public Accountants (AICPA) for its five-day Business Valuation School course and by the National Association of Certified Valuators and Analysts (NACVA) for its two-day Advanced Business Valuation course. The VPS DLOM Guide and Toolkit is the core resource for NACVA’s one-day DLOM course. Mr. Hitchner designed all three courses.

He has spent over 38 years in valuation services, including as a shareholder with Phillips Hitchner Group, partner-in-charge of valuation services for the Southern Region of Coopers & Lybrand (currently PricewaterhouseCoopers), and senior appraiser with American Appraisal Associates. In the valuation area he has coauthored over 20 courses, taught over 60 courses, published over 140 articles, and has made over 350 conference and webinar presentations. 

He is also an inductee in the AICPA Business Valuation Hall of Fame and a two-time recipient of the AICPA’s Business Valuation Volunteer of the Year award. He was also one of the four original members of the AICPA Business Valuation Standards Writing Task Force and served for the entire six years, up to the June 2007 official release of the standards.


Harold MartinHarold Martin, Jr., CPA/ABV/CFF, ASA, CFE

Harold G. Martin, Jr. is the Partner-in-Charge of Valuation and Forensic Services for Keiter, a certified public accounting and consulting firm located in Richmond, Virginia.  He is also a member of Keiter’s Executive Committee.  He has over 35 years of experience in valuation, forensic accounting, public accounting, and financial services.  He has performed over 1,400 valuation and forensic accounting projects.   He has qualified as an expert witness before U.S. District Court, U.S. Bankruptcy Court, various circuit courts, American Arbitration Association, and National Association of Securities Dealers. He has been appointed by U.S. District Courts as a forensic accountant on cases in which he collaborated with the Securities and Exchange Commission and the Federal Bureau of Investigation.  He has also been appointed by the U.S. Office of the Federal Public Defender as a consultant on major fraud cases.  He was recently retained by the U.S. Department of Justice as a consultant/expert in a litigation to be tried before the U.S. District Court.  He has presented testimony at trial, arbitration, and deposition over 70 times. 

Harold is also an adjunct faculty member of The College of William and Mary Raymond A. Mason School of Business.  He has taught forensic accounting in the Master of Accounting program for 14 years, and has also served as a guest lecturer for the M.B.A program and the Marshall-Wythe School of Law.  He has also served as a guest instructor at the FBI Academy for forensic accountants in Quantico, Virginia.

Prior to joining Keiter, he was affiliated for 13 years with two of the “Big Eight” (now “Big Four”) international accounting firms, serving as a Director responsible for managing the Financial Advisory Services practice for Coopers & Lybrand’s Richmond, Virginia office and as a Senior Manager in Management Consulting Services for Price Waterhouse. He also served as a Direct Loan Officer in retail banking at First & Merchants National Bank.

Harold is a member of the American Institute of Certified Public Accountants Business Valuation Hall of Fame and is a two-time recipient of the AICPA Business Valuation Volunteer of the Year Award.  He serves as an instructor for the AICPA National Business Valuation School and AICPA Expert Witness Skills Workshop, and is a former instructor for the AICPA ABV Exam Review Course.  He is a former member of the AICPA  Business Valuation Committee, former Chair of the AICPA National Business Valuation Conference Steering Committee, former commissioner of the AICPA National Accreditation Commission, former editor of the AICPA ABV e-Alert, and former editorial adviser and contributing author for the AICPA CPA Expert.  He created and serves as chair of the Virginia Society of Certified Public Accountants Business Valuation, Fraud, and Litigation Services Conference.  He is a former member of the VSCPA’s Board of Directors and former chair of the Business Valuation Committee and Litigation Services Committee.  He was selected as a “Super CPA” in peer surveys conducted by Virginia Business and the VSCPA. 

He is a co-author of Financial Valuation:  Applications and Models, 1st-4th ed., a contributing author to Cost of Capital:  Estimation and Applications, 2nd-4th ed., an expert panelist for Financial Valuation and Litigation Expert, an Editorial Board member for Business Valuation Update, and a member of the VSCPA Editorial Task Force for Disclosures. He has been interviewed by The Wall Street Journal, as well as numerous other publications.

Harold received his A.B. degree from The College of William and Mary and his M.B.A. degree from Virginia Commonwealth University where he was a member of Beta Alpha Psi (National Accounting Honorary).  He is certified by the American Institute of Certified Public Accountants as a Certified Public Accountant (CPA), Accredited in Business Valuation (ABV), and Certified in Financial Forensics (CFF); by the American Society of Appraisers as an Accredited Senior Appraiser in Business Valuation (ASA); and by the Association of Certified Fraud Examiners as a Certified Fraud Examiner (CFE).

Chris Mercer Z. Christopher Mercer, FASA, CFA, ABAR

Z. Christopher Mercer is the founder and chief executive officer of Mercer Capital, a business valuation and financial advisory firm with offices located in Memphis, Dallas, and Nashville.

Chris began his valuation career in the late 1970s. He has prepared, overseen, or contributed to hundreds of valuations for purposes related to tax, ESOPs, buy-sell agreements, and litigation, among others. In addition, he has served on the boards of directors of several private companies and one public company. He enjoys working with business owners to address ownership transition issues.

In addition, Chris has extensive experience in litigation engagements including statutory fair value cases, divorce, and numerous other matters where valuation issues are in question. He is also an expert in buy-sell agreement disputes.

Chris is a prolific author on valuation-related topics and a frequent speaker on business valuation issues for national professional associations and other business and professional groups.


Dave MilesDave Miles, ValuSource

Dave Miles is the Business Valuation Manager at ValuSource. For the last eighteen years, he has worked on developing software, web applications, publishing datasets, and providing expertise to the ValuSource team and customers. He has had conversations with thousands of appraisers and valuators across the country helping them accomplish their goals, and has had many conversations with vendors in order to publish data appropriately. Prior to joining ValuSource, Dave was the CFO of an eighty-million-dollar financial institution.


Jim Reto James Reto, CPA/ABV/CFF, ASA

James J. Reto is a leader in Kaufman Rossin’s forensic, advisory and valuation services practice. He provides business valuation and forensic accounting services for commercial litigation and family law matters. Jim has provided expert testimony and assistance at trials, mediations, and arbitrations. Jim also has experience providing traditional audit, accounting and tax services to large and small, closely-held entities. He is a Certified Public Accountant in Florida, Accredited in Business Valuation by the American Institute of Certified Public Accountants, an Accredited Senior Appraiser of the American Society of Appraisers, and Certified in Financial Forensics by the American Institute of Certified Public Accountants. Jim earned a Bachelor of Science in Business Administration from Youngstown State University.


Chris RosenthalChristopher Rosenthal, CPA/ABV/CFF, ASA, AEP

Christopher Rosenthal, CPA/ABV/CFF, ASA, AEP is a Director and leader of Ellin & Tucker’s Disputes, Forensic and Valuation Services practice. He sits on the leadership committee as Chair of the practice and serves as the city leader for the firm’s Washington D.C. office. Chris has more than 30 years of dispute, forensic and valuation consulting experience. Chris’ practice is focused on providing dispute consulting, forensic accounting and expert witness testimony in a wide variety of complex litigation matters. His clients include law firms, general counsels of corporations, governmental agencies, public and private entities and individuals. <p>Chris has been qualified and testified in court as an expert witness in over 100 bench and jury trials involving civil fraud, commercial business damages, intellectual property and patent damages, business valuations and bankruptcy matters as well as a variety of other disputes. He has given deposition testimony in over 200 cases. In addition, he has served as a court‐appointed expert and an arbitrator.


Ron SiegneurRonald L Seigneur, MBA, ASA, CPA/ABV/CFF, CVA

Ron is Managing Partner of Seigneur Gustafson LLP CPAs, based in Lakewood Colorado, where he is responsible for financial forensics, economic damages assessments, business and intellectual property valuation, exit planning and related litigation support services.  Ron holds the Accredited in Business Valuation (ABV), Certified Global Management Accountant (CGMA) and Certified in Financial Forensics (CFF) designations from the American Institute of Certified Public Accountants, the Certified Valuation Analyst (CVA) designation from the National Association of CVAs, and is a Senior Appraiser (ASA) with the American Society of Appraisers.  He is co-author of the 1300+ page treatise on business appraisal titled Financial Valuations: Applications and Models, published by John Wiley & Sons in 2011, andReasonable Compensation: Applications and Analysis for Management, Valuation and Tax, published by Business Valuation Resources in 2010. 

Ron is co-founder of YS Advisory, a consultancy focused on advising practitioners and attorneys on practice management and technical issues in the areas of business and IP appraisal, economic damages, financial forensics, malpractice issues and related concerns. He has been an adjunct professor at the University of Denver, College of Law for over 20 years, where he teaches law firm finance, leadership and management classes.  He is a fellow of the College of Law Practice Management and a frequent speaker and author on valuation, economic damages, leadership, and other professional firm practice management topics.  Ron was the 2009-10 chair of the Colorado Society of CPAs and was inducted into the AICPA Business Valuation Hall of Fame in 2006.


Keith SellersKeith Sellers, CPA/ABV, CVA, Ph.D.

Keith Sellers joined the Daniels College of Business in 2011. Prior to joining the School of Accountancy, he was a professor at the University of North Alabama&apos;s College of Business, where he was the LaGrange Eminent Scholar of Business Valuation. Dr. Sellers has performed extensive research into the determinants of value of closely held companies, as well as the stock market perceptions of employee stock ownership plan sponsorship. His research has been recognized and funded by the Ernst &amp; Young Tax Research Foundation and has been published in numerous journals including the Journal of Accountancy, Accounting Horizons, the Value Examiner, the Journal of the American Taxation Association, the National Tax Journal, the Journal of Business Finance and Accounting and Research in Accounting Regulation.

Dr. Sellers teaches the concepts and compliance of business valuation in graduate business courses including Business Valuation, Taxation of Business Entities, Financial Statement Analysis and Financial Reporting Theory. Dr. Sellers received his Bachelor of Accounting degree from the University of Tennessee, Master of Taxation from the University of Denver, and received his Doctor of Business Administration degree from the University of Memphis. Prior to joining the University of North Alabama, Dr. Sellers held the Baird, Kurtz and Dobson Endowed Lectureship at the University of Arkansas and was Director of the Accounting Program at Fort Lewis College.

Dr. Sellers is the founder and president of Financial Valuation Services, Inc., a full service business valuation firm with clients in twenty states, and is cofounder of Derivative Valuation Services, LLC, a software development and consulting firm specializing in the valuation of employee stock options, warrants, and other derivative equity securities. Dr. Sellers is a Certified Public Accountant (CPA), Certified Valuation Analyst (CVA), is Accredited in Business Valuation (ABV) by the AICPA. Dr. Sellers serves on the Editorial Boards of The Value Examiner and the Journal of Business Valuation and Economic Loss Analysis. In addition to his business valuation experience, Dr. Sellers provided tax and management advisory services with Deloitte Touche and KMPG and worked as a financial analyst and valuation consultant with Banking Consultants of America and its affiliated trust company, First Southern Trust Company, both located in Memphis, Tennessee.


Barry Sziklay Barry Sziklay

 Bio coming soon!

 

 

 


Chris TreharneChris Treharne, ASA, CVA

Chris Treharne is Managing Director of Gibraltar Business Valuations in Longmont, Colorado, and has been practicing as a business appraiser for more than 29 years. He has earned the Accredited Senior Appraiser, Master Certified Business Appraiser, and Certified Valuation Analyst business valuation designations from the American Society of Appraisers, The Institute of Business Appraisers, and the National Association of Certified Valuation Analysts, respectively.

Having prepared numerous presentations and authored papers on S corporation valuation issues, Chris is nationally recognized as an expert on the topic. At the request of the Hon. David Laro of the U.S. Tax Court and Dr. Shannon Pratt, he co-authored a chapter on the topic in their book, Business Valuation and Taxes: Procedure, Law & Perspective. His S corporation valuation model also appears in Financial Valuation Models and Applications Fourth Edition and Fannon’s Guide to the Valuation of Subchapter S Corporations. A white paper he co-authored was presented to the Treasury Department by the S Corporation Association, and he has co-hosted national teleconferences on the subject, including a private program for IRS business valuation employees.

Chris is a faculty member for the American Society of Appraisers Principles of Valuation curriculum and is on its Professional Standards Subcommittee and Government Affairs Committee.  He also is a member of The S Corporation Association’s Advisory Board. Additionally, he is a licensed Professional Engineer, Community Association Manager, and real estate broker in Colorado. His academic background includes a BS in Electrical Engineering from the University of Iowa and an MBA (finance emphasis) from the University of Colorado at Boulder.

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