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| Using the Pepperdine Private Capital Markets Studies in Business Valuations and Economic Damages (2242Q) |
Course CPE: 2 hours
Field(s) of Study: Finance–1 hr; Economics–1 hr
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 26BV0309UPP
Shipping Weight: 0lbs. 0oz. |
| Price:
$147.00 |
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Recording Date: March 9, 2026
Presenter: Miranda Kishel and Michael D. Pakter
Program Description:
The article *“Using the Pepperdine Private Capital Markets Studies in Business Valuations and Economic Damages Analyses” by Michael D. Pakter and Miranda Kishel examines how the Pepperdine Private Capital Markets Studies (“Pepperdine Studies”) can be used to strengthen professional analyses involving privately held companies. It provides both a technical overview and practical guidance for integrating this dataset into valuation and damages work.
The authors begin by explaining the origins and purpose of the Pepperdine Private Capital Markets Project, initiated in 2007 to fill the gap in empirical research on private capital markets, which historically lacked transparency compared with public markets. The project collects data directly from market participants—private equity groups, venture capital firms, lenders, and valuation professionals—to estimate costs of capital, expected returns, and investment behaviors. These studies have become a leading resource for understanding risk and return characteristics in private-company finance.
The article discusses how Pepperdine data can inform both business valuations and economic damages calculations. In valuations, it helps professionals select discount rates that reflect the unique risk profiles of privately financed businesses. In economic damages engagements—particularly those involving lost profits—the data’s risk-adjusted returns can be used to discount projected cash flows to present value more accurately. The authors explain how variations in financing sources (e.g., private equity versus senior debt) influence risk and how the Pepperdine data can tailor the discount rate accordingly.
Ms. Kishel provides personal insights from participating in the Pepperdine Studies as both a small-business lender and a valuation professional, highlighting that while the survey offers useful trend information, it is largely based on self-reported estimates. Thus, the authors recommend using the Pepperdine Studies as a corroborative rather than primary data source, supplementing more statistically rigorous tools such as Kroll’s Cost of Capital Navigator or BVR’s Cost of Capital Professional.
The article then contrasts Pepperdine data with other sources—public market data, industry reports, government statistics, and proprietary databases—identifying the strengths and limitations of each. It cautions practitioners about potential shortcomings of the Pepperdine Studies, including small sample sizes, geographic concentration, and selection bias. The authors advise careful data comparison, sensitivity and scenario analysis, and transparent documentation when presenting findings in reports or expert testimony.
Ultimately, the article concludes that while the Pepperdine Studies should not replace empirical datasets, they remain an accessible and valuable reference for identifying market trends, contextualizing risk, and supporting defensible opinions in valuations and economic damages analyses.
Takeaways
After completing this course, attendees will be able to effectively incorporate the Pepperdine Private Capital Markets Studies into business valuation and economic damages analyses. They will understand how to select and apply cost of capital data from private market sources to develop defensible discount rates and lost profits calculations. Participants will also be able to recognize the strengths and limitations of the Pepperdine data, compare it with other empirical resources, and integrate it transparently into expert reports and testimony. Ultimately, attendees will enhance the accuracy and credibility of their analyses involving privately held companies.
After completing this course, you will be able to:
- Identify the purpose and origins of the Pepperdine Private Capital Markets Project and how it enhances understanding of private capital markets
- Identify the types of data collected in the Pepperdine Studies and the various categories of market participants surveyed including lenders private equity firms and venture capital groups
- Differentiate between public and private capital markets and analyze why private markets require specialized approaches to valuation and risk assessment
- Select Pepperdine cost of capital data to develop or corroborate discount rates in business valuation and economic damages analyses
- Determine the strengths and limitations of the Pepperdine Studies including issues of sample size self reporting bias and geographic concentration
- Select Pepperdine data with other resources such as Kroll BVR industry reports government statistics and proprietary databases to enhance analytical reliability
- Select Pepperdine findings effectively into expert reports and testimony by selecting relevant data points and presenting them with transparency and visual clarity
- Determine sensitivity and scenario analyses to test the robustness of conclusions that incorporate Pepperdine data in valuations or lost profits calculations
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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