BV529 The Size Premium: Fact or Fiction Should It Still Be Used in Your Valuations?
Includes a Live Web Event on 10/06/2022 at 1:00 PM (EDT)
Thursday, October 6, 2022
1:00pm-3:00pm Eastern Standard Time
- Access to virtual webinar via zoom will be accessible via education dashboard (login required)
- Electronic webinar handout(s)*
*Any webinar handouts will be made available to registrants the morning of the live event and made accessible via your education dashboard (login required). Once handouts have been posted for download, the class is no longer refundable.
Continuing Education (CE) Credit
This webinar will award 2 CE/CPE hour(s) for the live event.
If you are a designated member of ASA, CE credit will automatically be entered into your record after you participate in the live webinar. Please allow 1 week post-webinar for ASA to grant access to a certificate of completion.
NASBA and Continuing Professional Education (CPE) Credit
ASA 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 the 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.learningmarket.org.
CPE Credit: Up to two (2) CPE credits in Specialized Knowledge
Program Level: Intermediate
Delivery Method: Only group-live courses are approved for CPE
Advanced Preparation: None
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy
The use of a size adjustment when estimating the cost of capital for a small firm has become common practice in business valuations. However, the application of a size premium is not without controversy. In this webinar, we will go back to basics and provide support to why valuation professionals can continue to make use of a size adjustment in their valuations
- What is the size effect?
- Does the size effect still exist?
- How is size measured?
- Criticisms of the size effect and selected counter-arguments
- Case Study - How to use the data in Kroll’s Risk Premium Report using:
- The Capital Asset Pricing Model (CAPM)
- Various Build-up Approaches
Methods include lecture, visual PPT presentation and polling questions.
Valuation (financial reporting, tax, litigation, fairness opinions) professionals, Corporate Development teams, Controllers, Financial Planning & Analysis (FP&A) teams, Investment Banking professionals, Private Equity professionals
Upon completion of this course, students will be able to:
- Describe the size effect;
- Identify different ways to measure the size effect;
- Recognize criticisms of the size effect and list counter-arguments; and
- Apply size adjustments to a cost of equity estimate using the Capital Asset Pricing Model, as well as different specifications of the build-up model.
All course materials included with you registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.
eMaterials are provided electronically in PDF format and posted to the class the morning of the live event and listed within the education dashboard for all registrants to securely access prior to the start of the webinar. When opting to print downloadable materials, it is recommended that settings be adjusted to print in black and white (or grayscale) and consider printing double-sided on recycled paper.
Certificate of Completion
A certificate of completion will be available to view and/or download immediately via your education dashboard once all required components are completed.
Carla S. Nunes, CFA, ABV
Carla Nunes is a managing director in the Office of Professional Practice (OPP) of Kroll, based in the Philadelphia office, and a Kroll Institute Fellow. She has over 25 years of experience. In her OPP role, she provides firm-wide technical guidance on a variety of valuation, financial reporting and tax issues. She is also the global leader of Kroll’s Valuation Digital Solutions group, which produces the cost of capital thought leadership content and data housed in the Cost of Capital Navigator.
James P. Harrington
James Harrington is a Director at Kroll and provides technical support on client engagements involving cost of capital and business valuation matters. He is a leading contributor to Kroll’s efforts in the development of studies, surveys, online content and tools, and firmwide valuation models. James is co-author of the “Valuation Handbook” series with colleagues Carla Nunes and Roger Grabowski and is a contributing author to Cost of Capital.