| The Size Effect—It is Still Releveant
Program Type: VideoCast (Audio,Video, PPT Presentation)
Program Level: Advanced
Prerequisites: Good knowledge of subject matter and experience in the field.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Three (3) Hours
Fields of Study: Specialized Knowledge & Applications; Finance; Administrative Practice (Consulting)
Shipping Weight: 0lbs. 0oz.
In this webinar, the presenter will discuss: 1) the historical (and ongoing) evolution of developing discount rates, including the development of the size premium; 2) criticisms of the size premium; 3) analyses that demonstrate why the size premium is a valid adjustment when doing valuation analysis; and 4) how much, if any, does the size premium relate to liquidity.
The presenter will conclude with a discussion of new research that may shine a light on “what’s next” in this ongoing evolution.
After completing the session, attendees will be able to:
- Summarize the evolution of the discount rate development, including the size premium
- Describe and debate the criticisms of, and support for, the size premium
- Explain the issues in regards to whether the size premium is just a proxy for one or more factors correlated with “size”
- List new research that may shine a light on “what’s next” in the ongoing evolution of predicting expected returns (i.e., discount rates)
Who Should Attend
Roger J. Grabowski, FASA
Mr. Roger J. Grabowski is a managing director with Duff & Phelps, LLC. He is also an Accredited Senior Appraiser and Fellow (FASA) of the American Society of Appraisers (ASA) (their highest designation), Business Valuation.
He was formerly managing director of the Standard & Poor’s Corporate Value Consulting practice, a partner of PricewaterhouseCoopers LLP and one of its predecessor firms, Price Waterhouse—where he founded its U.S. Valuation Services practice and managed the real estate appraisal practice.
He has directed valuations of businesses, interests in businesses, intellectual property, intangible assets, real property, and machinery and equipment. He has been recognized in various courts as an expert on matters of solvency, the value of closely held businesses and business interests, valuation and amortization of intangible assets, and other valuation issues.
His testimony in U.S. District Court was referenced in the U.S. Supreme Court opinion decided in his client’s favor in the landmark Newark Morning Ledger case.
Mr. Grabowski is co-author with Shannon Pratt on Cost of Capital: Applications and Examples, 5th edition (John Wiley & Sons, 2014), The Lawyer’s Guide to Cost of Capital (ABA, 2014), and Cost of Capital in Litigation: Applications and Examples (John Wiley & Sons, 2010). He is co-author of the Duff & Phelps annual resources for cost of capital data: Valuation Handbook-Guide to Cost of Capital, Valuation Handbook-Industry Cost of Capital, International Valuation Handbook – Guide to Cost of Capital, and International Valuation Handbook – Industry Cost of Capital (John Wiley & Sons).
He teaches courses for the American Society of Appraisers, including Cost of Capital—a course he developed.