FVC2438. Determining the Appropriate Discount Rate for Valuing Intangible Assets in a PPA

This session will explore the rate that is appropriate to value various intangible assets in a purchase price allocation. Many appraisers select a rate at the weighted average cost of capital (WACC) or higher under the argument that an intangible asset should be assigned a WACC rate or higher. This session wilI look at the facts and circumstances of the underlying asset to arrive at a supportable discount rate.

Learning Objectives:

• Analyze the key criteria for qualitatively assessing asset risk.
• Identify the benchmarks for selecting a risk rate.
• Analyze the relationship between asset risk for reconciliation (WARA) in a business combination.