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Understanding the Company-Specific Risk Premium: A Guide for Attorneys

Gross Mendelsohn

Understanding risk factors is essential in determining how a business will be valued. Let’s consider what your business-owning clients need to know about company-specific risks and how they come into play when it’s time for a business valuation.

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Risk Premiums: A Look at CSRP

BVR

Is anything “company-specific” per se? Company-specific risk is not an ideal name for this risk. All firms face company-specific risks, many of which are somewhat similar across industries and companies. For example, how many firms have you valued that had to deal with the risk of customer concentration?

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PARAMETERS UPDATE P5.6

Equidam

You can refer to the table at this link to see how they will change for your industry specifically. 2 | Discount rate components used in the two DCF methods Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk.

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PARAMETERS UPDATE P5.5

Equidam

You can refer to the table at this link to see how they will change for your country specifically. Most of the parameters determining the discount rate have been updated to reflect the most recent market situation in terms of systemic and industry-specific risk. 2 | Discount rate components used in the two DCF methods.

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Third-Party Risk Management: Emerging Risk and Opportunity for Improvement

Audit Board

However, they may not be specific enough to address every relationship’s specific risk profile or controls needs. Frameworks like Google SLSA Framework and NIST SP 800-161 have been helpful resources for us recently.

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Mythical Adverse Effect

Reynolds Holding

This structure is intended to allocate to the seller only target-specific risks within the seller’s control, leaving the buyer to bear all other risks. Next come several exceptions to that rule (or “carve-outs”) for various categories of events, followed by exceptions to those exceptions (or “carve-backs”).

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What is Business Valuation? Why & When You Need One

GCF Value

To arrive at an estimation of value, as a starting point you can expect an accredited appraiser to: Review financial statements Identify income statement and balance sheet adjustments Review the business operation Determine the appropriate valuation model Review economic and industry data Compare market transactions for similar companies The analyst (..)