27
/ April
2010
Have the last six months changed the business valuation profession?
So much has been written about the general economy, and thanks to the new appraiser survey conducted by Robert Slee and John Paglia, as part of the Pepperdine Private Capital Markets Project, BVWire is happy to offer the following snapshot of some key factors. Compared to six months ago, Slee and Paglia find that the appraiser market has generally grown, and that valuation approaches have stayed essentially stable. You still have time to participate; the Private Capital Survey ends this Friday. (Note: BVR surveys the BV profession every two years in its Business Valuation Firm Economics & Best Practices Survey. The next 2011 edition will be available early this fall.)
| Decreased | About same | Increased | |
| Number of engagements | 19.7% | 42.6% | 37.7% |
| Time to complete a typical appraisal | 6.6% | 73.8% | 19.7% |
| Fees for services | 20.3% | 59.3% | 20.3% |
| Time to receive payment for services | 0.0% | 73.3% | 26.7% |
| Size of your BV department | 9.8% | 83.6% | 6.6% |
| Cost of capital | 21.7% | 45.0% | 33.3% |
| Market (equity) risk premiums | 15.3% | 37.3% | 47.5% |
| Control premiums | 12.7% | 74.5% | 12.7% |
| Minority discounts | 13.6% | 74.6% | 11.9% |
| DLOMs | 15.0% | 56.7% | 28.3% |
| Company specific risk premiums | 11.7% | 53.3% | 35.0% |
| Reliance on income approach | 8.2% | 72.1% | 19.7% |
| Reliance on market approach | 15.0% | 70.0% | 15.0% |
| Reliance on asset approach | 13.3% | 71.7% | 15.0% |