Ray Rath of Globalview Advisors presented on the topic of “Market Participant Acquisition Premiums” to the Los Angeles Chapter of the California Society of Certified Public Accountants (CalCPA), held at the LAX Renaissance Hotel in Los Angeles. A Market Participant Acquisition Premium (MPAP) is a refinement of the concept of a control premium. Control premiums (now MPAPs) are widely used in the valuation of business enterprises or securities interests. As a result of divergence in practice in the development of control premiums, The Appraisal Foundation established a working group to assist valuation professionals in better understanding acquisition pricing.
Ray’s remarks included a detailed discussion of the latest exposure draft on MPAPs including the rationale and development of an MPAP for a specific transaction. Transaction premium insights were also covered in the presentation.
CalCPA is headquartered in San Mateo, California, and is the nation’s largest state accounting organization of CPAs. It serves more than 40,000 members in public practice, private industry, education and government.