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Program Description
This webinar will discuss why appraisers should consider using the Implied Private Company Pricing Model (IPCPM) by commenting on the flaws of the Build-Up Method (BUM) and the Modified Capital Asset Pricing Model (MCAPM). The presenters will then discuss the IPCPM, including how it was created and how it eliminates problems pertaining to specific issues such as the small stock premium, the tax rate, liquidity adjustment, and the company specific risk adjustment.
Learning Objectives
After completing this webinar, attendees will be able to:
- List the flaws of the BUM and MCAPM
- Recognize the flaw of the "small" stock premium
- Estimate the weighted average cost of capital for the determination of fair market value of small, privately held companies using the discounted cash flow method
- Identify how IPCPM eliminates the following problems pertaining to:
- The small stock premium
- Tax rate
- Liquidity adjustment
- Company specific risk adjustment
Who Should Attend
Appraisers of the control interests of private companies
Presenter(s)
Robert Dohmeyer, ASA
Mr. Bob Dohmeyer is the founder of Dohmeyer Valuation Corporation, a business valuation and M&A consulting firm. Bob provides professional valuation advice and appraisals primarily for bankruptcy and family law matters. He also specializes in complex valuation issues and provides consulting work for other appraisers in this regard. Mr. Dohmeyer has lectured and published several papers on various valuation topics and is on the editorial review board of the Journal of Business Valuation & Economic Loss Analysis.
Prior to forming Dohmeyer Valuation Corp., Mr. Dohmeyer was employed by a Fortune 100 conglomerate where he held numerous management positions and was responsible for estimating the firm’s cost of capital, analyzing and evaluating merger and acquisition candidates, and hedging/trading crude oil. Mr. Dohmeyer is the co-developer of the Implied Private Company Pricing Line (IPCPL) and the Implied Private Company Pricing Model (IPCPM). He received a bachelor’s degree in finance from California State University, Fullerton, and is an ASA.
Peter Butler, CFA, ASA, MBA
Mr. Peter Butler, principal at Valtrend, LLC, in Eagle, Idaho, has more than 19 years of diverse financial and business valuation experience. Peter has valued both privately held companies and publicly traded securities for a variety of purposes.
He invented and co-developed the Butler Pinkerton Calculator (BPC), a reference source (using publicly traded data) to help in the development of a private company’s cost of capital. He also co-developed the Implied Private Company Pricing Line (IPCPL) and the Implied Private Company Pricing Model (IPCPM) as complementary tools to aid in the development of a private company’s cost of capital.
Mr. Butler has published numerous articles in all of the major U.S. business valuation journals as well as in a Romanian journal. He has been invited to speak at numerous national and regional conferences as well as one international business valuation conference.
Mr. Butler holds a BS in mechanical engineering from the U.S. Naval Academy and has earned an MBA in finance from San Diego State University. Mr. Butler also served as a four-term president of the CFA Society of Idaho and taught as an adjunct faculty professor of finance in the MBA Program at George Fox University.
CPE Credit |
Robert Dohmeyer, ASA
Peter Butler, CFA, ASA, MBA
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