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| Size Premium: A Sensitivity Analysis(2072Q) |
Course CPE: 1 hour
Field(s) of Study: Finance–1 hr
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 24BV0909SPS
Shipping Weight: 0lbs. 0oz. |
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$99.00 |
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Recording Date: September 9, 2024
Presenter: Derek Zweig
Program Description:
In the world of business valuation, the size premium is one of the most widely used—and misunderstood—adjustments in determining the cost of capital. Valuation professionals often apply it based on standardized reference tables, without full awareness of the assumptions and sensitivities underlying the data. This course is designed to change that.
"Size Premium: A Sensitivity Analysis" is an advanced course tailored for valuation analysts, forensic accountants, financial consultants, and litigation support professionals who want to go beyond surface-level application and gain a deeper understanding of how size premiums work—and how they can go wrong. Led by Derek Zweig and Adam Luke, co-founders of Value Analytics, this course explores how methodological choices, sample selection, and input assumptions significantly affect size premium estimates.
Drawing from real-world experience and backed by a proprietary data platform, the instructors demonstrate the full scope of variability in size premium application. You'll see in real time how toggling variables like industry classification, data window, weighting method, and sorting metric can lead to drastically different valuation outcomes. By the end of the session, you'll understand that size premiums are not static values—they are dynamic figures that must be tailored to each engagement’s specific context.
This course emphasizes critical thinking, data transparency, and hands-on learning. It equips you with the mindset and tools needed to defend your valuation conclusions with greater confidence, accuracy, and clarity. Whether you're testifying in court, preparing a fairness opinion, or producing a financial report, the ability to justify and support your size premium selection can be the difference between credibility and scrutiny.
Participants will also gain access to a visualized analytics platform that enhances their ability to explore, test, and explain size premium assumptions, fostering a more defensible and rigorous valuation process.
After completing this course, you will be able to:
- Identify key assumptions that influence the calculation and application of the size premium
- Recognize the risks of using pre-calculated size premiums without conducting sensitivity analysis
- Differentiate between various sorting metrics (e.g., market cap, revenue, employee count) and their effect on size premium outcomes
- Determine how methodological changes (e.g., equal vs. value weighting) impact size premium estimates
- Select appropriate industry classifications and data samples to produce more defensible premiums
- Recognize how survivorship bias and data selection distort historical size premium benchmarks
- Identify situations where a standard size premium may be inappropriate due to firm-specific or sector-specific characteristics
- Differentiate dynamic, assumption-sensitive models from static reference tables in professional valuation settings
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) 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 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.nasbaregistry.org. |
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