Tech Transfer Central

An IP Cost of Capital Estimation Model

Format: On Demand Pack: Recordings & Transcripts
Originally presented: August 20, 2009

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Price: $249
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TECHNOLOGY TRANSFER TACTICS is pleased to offer an educational program in partnership with Business Valuation Resources, Inc.

Existing cost of capital estimation models fail to capture the unique attributes of intellectual property (IP). And, according to Mike Pellegrino, that inability to assess risks and success rates leads to indefensible – and sometimes erroneous – valuation determinations. Whereas many IP cost of capital estimations are adjusted using little more than the appraiser’s experience, Pellegrino has developed a model that captures the unique attributes of IP using objective empirical evidence.

That model will be presented in “An IP Cost of Capital Estimation Model,” a 100-minute teleconference hosted by Business Valuation Resources, LLC. Joining Pellegrino will be valuation experts Richard Bero and Neil Beaton who will put this model under close scrutiny as they test its validity and applicability. For anyone challenged with assessing discounts rates for IP valuations, this presentation is a must.

Your Session Leader
Hear Mike Pellegrino describe the program (click to play)

Mike Pelligrino, MBA, Pellegrino & Associates has earned a reputation as an industry-leading embedded software appraisal firm. The company has been recognized as an expert by Valuation Strategies, The Journal of Taxation, CFO Magazine and Info Tech Research Group, the leading IT research firm for mid-sized companies. In addition to its extensive software valuation experience, Pellegrino & Associates has built a knowledge base on the valuation of early-stage technologies and other intellectual properties. Since 2004, the company has valued a variety of patents and other forms of intellectual property, business, human capital, training benefits, facility moves, capital purchase decisions, in-place and assembled workforces, workforce restructurings, business process outsourcing and restructuring, and efficiency improvements. Today, Pellegrino & Associates is a growing valuation services firm focused on providing the most precise, credible, and equitable valuations for investment and tax reporting purposes. With offices in Indianapolis, Indiana, Pellegrino & Associates has been proud to serve companies ranging from small, privately-owned organizations to Fortune 500 companies. Clients have used the company’s valuations for internal capital budgeting and planning purposes, for property tax reporting purposes, for raising investment capital, and for economic feasibility analysis.


Robert Schlegel
Houlihan Valuation Advisors

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Neil Beaton
Grant Thornton LLP

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  • An overview of existing cost of capital estimation models
    • Overall strengths of those models
    • Shortcomings when applied to intellectual property (IP)
  • An IP cost of capital estimation model
    • Ability to capture IP-specific factors:
      • Target rate of return
      • Success rate of getting IP to the market
      • Holding period for IP investment
      • Associated expenses for managing the investment
    • Empirical foundations and underpinnings
    • Model extensions
    • Examples and demonstrations of the model’s uses
  • IP review of the model from Rick Bero, IP expert
  • Cost of capital review of the model from Neil Beaton, cost of capital expert

Learning Objectives

  • Learn which characteristics of intellectual property (IP) are inadequately captured in existing cost of capital (COC) models
  • Understand how the IP COC estimation model captures those characteristics and what this means for valuations using this data
  • See how empirical evidence supports the findings of the IP COC estimation model
  • Learn how the IP COC estimation model can be extended to other uses

On Demand Pack: Recordings & Transcripts

On Demand Packs are an indispensable addition to any valuation reference library. Use them as training tools as many times as you’d like, wherever you are: play them at your computer at work or home, in your car, or on your personal audio device.

Each On Demand Pack includes:

  • Recordings and transcripts of the presentation
  • All presentation visual aides and handouts
  • All ancillary reading materials suggested by our presenters

About the Publisher
Technology Transfer Tactics is proud to partner with Business Valuation Resources (BVR) in bringing this important guide to our customers. Every top business valuation firm depends on BVR for authoritative market data, continuing professional education, and expert opinion. Founded by Dr. Shannon Pratt, BVR’s market databases and analysis have won in the courtroom-and the boardroom-for over a decade. You can find Pratt’s Stats, newsletters, CPE, research reports, teleconferences, books and more BVR services at:

Quality and Value

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