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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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The Magnificent 7: A Sustainability Perspective

Harvard Corporate Governance

While the aggregate results provide insight, for investors the most valuable aspect of this analysis might be to understand the dispersion within the Magnificent 7 and the specific risks and opportunities individual corporate performance present. more…)

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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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Discount Rate—Explanation, Definition and Examples

Valutico

To refine the selection of the discount rate, it’s important to draw on inputs from credible sources regarding economic, industry and company specific risk factors. Beta’s Role in Expected Return: The beta is multiplied by the market risk premium to calculate the additional return required for the stock’s specific risk.

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Navigating Uncertainties: A Business Owner’s Guide to Mergers and Acquisitions

Sun Acquisitions

This may involve implementing risk-sharing mechanisms such as earn-outs or escrow arrangements, obtaining appropriate insurance coverage, or renegotiating deal terms to mitigate specific risks.

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Atrion Corporation Enters Into Merger Agreement with Nordson Corporation

Benzinga

Forward-looking statements contained herein involve numerous risks and uncertainties, including the risk factors described in Part I, Item 1A. Risk Factors in our most recent Annual Report on Form 10-K and the specific risk factors discussed herein and. Full story available on Benzinga.com

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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.