Does Size Still Matter in Valuation?

Does Size Still Matter in Valuation?

For decades, valuation analysts have incorporated a “size premium” when calculating the cost of capital in their valuation engagements. A paper by Rolf Banz first documented the size effect in a 1981. Simply put, the theory asserts smaller companies have greater risks...
When Is a Calculation Appropriate?

When Is a Calculation Appropriate?

When it comes to valuations, CPAs must follow the guidelines of The American Institute of Certified Public Accountants (AICPA), specifically the AICPA’s Statement of Standards for Valuation Services No. 1 (SSVS). SSVS describes the two types of valuation engagements...