BV529 The Size Premium: Fact or Fiction Should It Still Be Used in Your Valuations?
- Registration Closed
Class Date/Time
Thursday, October 6, 2022
1:00pm-3:00pm Eastern Standard Time
Registration Includes
- 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
Prerequisites: None
Advanced Preparation: None
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy
Webinar Description
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
Instructional Methods
Methods include lecture, visual PPT presentation and polling questions.
Course Audience
Valuation (financial reporting, tax, litigation, fairness opinions) professionals, Corporate Development teams, Controllers, Financial Planning & Analysis (FP&A) teams, Investment Banking professionals, Private Equity professionals
Learning Level
Intermediate
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.
eMaterials
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.
Accessing eMaterials
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
Managing Director
Kroll
Carla S. Nunes, CFA, ABV, is a Managing Director in the Office of Professional Practice of Kroll. In addition, Carla is the Global Leader of Kroll’s Valuation Digital Solutions group, which produces cost of capital thought leadership content and data housed in the Cost of Capital Navigator. She has over 25 years of experience in valuation, financial reporting and tax, conducting numerous business and asset valuations for a variety of purposes including purchase price allocations, goodwill and asset impairments, mergers & acquisitions, tax restructuring, debt analysis, and gift and estate tax planning. Carla also has extensive experience working with multinational companies, having addressed complex tax, international cost of capital, and foreign exchange issues. Carla is a contributing author to “Cost of Capital: Applications and Examples,” 5th edition, by Shannon Pratt and Roger Grabowski. She is a co-author of the “Valuation Handbook” series and co-creator of the Kroll Cost of Capital Navigator. She recently co-authored Kroll’s ESG and Global Investor Returns Study and was a contributing author to The Appraisal Foundation’s “The Art of Valuation. Carla is a member of the Education Committee at the iiBV, and just completed her two-year term as Practitioner Director in the Board of FMA International.
James P. Harrington
Director
Kroll
James P. Harrington is a Director in Kroll’s Valuation Digital Solutions group, which produces the content and data housed in the Cost of Capital Navigator. James provides technical support on client engagements involving cost of capital matters. Previously, James was director of valuation research in Morningstar’s Financial Communications Business. James is co-author of the “Valuation Handbook” series with colleagues Carla Nunes and Roger Grabowski. James is co-author of the Stocks, Bonds, Bills, and Inflation® Summary Edition with Roger Ibbotson (Professor in the Practice Emeritus of Finance at Yale School of Management). James is a contributing author to Cost of Capital: Applications and Examples, 5th edition, by Shannon P. Pratt and Roger J. Grabowski. James is a contributing author to Shannon Pratt’s Valuing a Business – The Analysis and Appraisal of Closely Held Companies, Sixth ed. Jim has recently co-authored Kroll’s ESG and Global Investor Returns Study.