Cost of Capital Advice
We provide cost of capital advice to clients across many different industries, including infrastructure, forestry, viticulture, construction, technology, property, agriculture, manufacturing and financial services.
Establishing an appropriate cost of capital for any asset or business is difficult. Although all investors accept that the rate of return on an investment should be related to the risks involved, there is no real consensus as to the appropriate way to measure risk, or the appropriate risk premium that should be attributed to an investment. The arguments can be technical and somewhat arcane, but given the pivotal role that the cost of capital plays in many situations, the assessment must be correct.
Our approach has been scrutinised by the Commerce Commission and the Land Valuation Tribunal, as well as in private arbitrations and High Court proceedings. This discipline is continually evolving on the back of new research, and we spend considerable time keeping abreast of new developments to ensure that our advice is always based on industry best practice.