2012 using the market approach and data

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1. In valuing a private company, do you routinely consider the market approach; i.e., the use of private company transactions data as well as guideline public company data, to help reach a market value for the subject company? (Note: Simply answer yes or no; there will be room to comment elsewhere.)

Yes

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2. If you answered "no" to Question 1, please explain why you do not routly consider the market approach in your standard valuation practice.

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3. If you answered “yes” to Question 1, which of the following databases do you routinely use (please check as many as apply):

BIZCOMPs

Pratt's Stats

Public Stats

IBA database

Done Deals

Factset Mergerstat/BVR Control Premium Study

Other (please specify)

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4. If you routinely consider private and public company data in your market approach to private company valuation, what factors might cause you to reject it in any particular case?

Nature of subject company

Lack of sufficiently comparable companies/transactions in the data

Lack of information concerning the comparable companies and/or sales transactions in the data

Other (please specify in the comment field below)

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5. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider guideline public company data to determine capital structure when calculating the WACC?

Yes

Other (please specify)

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6. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider private company transaction data to determine capital structure when calculating the WACC?

Yes

Other (please specify)

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7. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless routinely consider public company data (from, e.g., Duff & Phelps or Ibbotson) to determine an equity risk premium and/or size premium?

Yes

Other (please specify)

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* 2. If you answered "no" to Question 1, please explain why you do not routly consider the market approach in your standard valuation practice.

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* 3. If you answered “yes” to Question 1, which of the following databases do you routinely use (please check as many as apply):

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* 4. If you routinely consider private and public company data in your market approach to private company valuation, what factors might cause you to reject it in any particular case?

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* 5. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider guideline public company data to determine capital structure when calculating the WACC?

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* 6. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider private company transaction data to determine capital structure when calculating the WACC?

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* 7. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless routinely consider public company data (from, e.g., Duff & Phelps or Ibbotson) to determine an equity risk premium and/or size premium?

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* 8. In general, can you please comment on the reliability of using market data to arrive at an overall value for a subject private company?

2. If you answered "no" to Question 1, please explain why you do not routly consider the market approach in your standard valuation practice.

3. If you answered “yes” to Question 1, which of the following databases do you routinely use (please check as many as apply):

4. If you routinely consider private and public company data in your market approach to private company valuation, what factors might cause you to reject it in any particular case?

5. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider guideline public company data to determine capital structure when calculating the WACC?

6. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless consider private company transaction data to determine capital structure when calculating the WACC?

7. If you have rejected the market approach in favor of the income approach in a particular case, do you nevertheless routinely consider public company data (from, e.g., Duff & Phelps or Ibbotson) to determine an equity risk premium and/or size premium?

8. In general, can you please comment on the reliability of using market data to arrive at an overall value for a subject private company?