Understanding the Cost of Capital in the Income Approach
Kimberly Linebarger, the Family Lawyer Magazine, October 17th, 2012.
Shannon Pratt guest opinion, Legislation Boosts Small Companies Harboring Big Dreams, Portland Business Journal, May 18, 2012.
Alina Niculita guest column, Post-recession world requires thorough valuation approach; numerous events can spur the valuation of a business, Portland Business Journal Wealth Management Insert, April 20, 2012.
Shannon Pratt outlined his criticisms of flaws in Robert Comment's article "Business Valuation, DLOM, and Daubert: The Issue of Redundancy." BVWire, Business Valuation Resources, January 4, 2012.
There is no area of law where there is as much confusion and as little consistency about the standard of value (a.k.a. definition of value) for business valuation as in the family law area. This article by Dr. Shannon Pratt and Alina Niculita emphasizes the importance of the standard of value in divorce valuations.
Shannon Pratt published in the Fall 2010 edition of the Business Valuation Review, American Society of Appraisers.
Shannon Pratt and Roger Grabowski published in the January/February 2009 edition of the Value Examiner, National Association of Certified Valuators and Analysts.
This article summarizes the latest thinking from Shannon Pratt and Roger Grabowski on why, given the current economic environment, the way the cost of capital is calculated must be reevaluated to reflect historically low yields, and the impacts they are having on the equity risk premium and betas.
This free podcast is an edited version of a March, 2008 teleconference hosted by Business Valuation Resources, featuring Dr. Shannon Pratt and Shannon Pratt Valuations COO Alina Niculita. Many practitioners use the Mergerstat®/BVR Control Premium Study™ for minority discounts and control premiums, but are unaware of its application as a valuation tool. The valuation multiples published by the database are imperative when utilizing the merged and acquired method in appraisals. In these highlights Dr. Pratt and Ms. Niculita discuss how to use this impressive valuation tool most effectively, and how to get all the information you need, regardless of the valuation scenario.
This chapter is from the Second Edition of Shannon Pratt's Business Valuation Discounts and Premiums, published in 2009 by John Wiley & Sons. The chapter provides a broad overview of the high degree of significance of the topic of discounts and premiums in business valuation. In fact, the existence and/or amount of discount or premium is often the largest money issue in disputed business valuations. The chapter distinguishes between those discounts and premiums that affect the whole enterprise and all its owners, called entity-level discounts, and those that are specifically a result of ownership characteristics (control and marketability or lack of either), called shareholder-level discounts and premiums. It also introduces level-of-value charts, and shows how the standard of value (for instance, fair market value, fair value, or investment value) has an effect on whether premiums or discounts apply in specific cases.
This chapter is from the Second Edition of The Lawyer's Business Valuation Handbook, published by the American Bar Association and co-authored by Shannon Pratt and Alina Niculita. The chapter provides attorneys with practical tips, checklists, and questions for cross-examining an opposing business valuation expert, as well as for preparing an attorney's own expert in cases involving business valuation issues. The chapter addresses expert testimony in both deposition and trial contexts, and provides questions relating to general matters as well as specific business valuation methodologies, such as the market approach or income approach.
Business Valuation | Mergers & Acquisitions | Gift and Estate Taxes | ESOP Employee Stock Ownership Plans | Damage Actions | Discounts and Premiums | Approaches to Value | Income Approach | Market Approach | Asset Approach | Expert Testimony | Marital Dissolution | Valuation Analyses | Valuation Report Reviews | Arbitrations | Liquidation | Tax Appraisal | Goodwill Valuation | Lost Profits | Intellectual Property | Intangible Assets | Medical Practice Valuation | Mediation | Cost of Capital | Business Appraiser | Fractional Interest | LLC Valuation