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By Charles Laverty, Jr., ASA, CBA, CFFA

One of the most crucial, yet subjective, aspects of any business valuation is determining the specific company risk premium of the business being appraised.  The specific company risk premium varies with each company and is intended to be an adjustment to reflect a variety of circumstances inherent in the company and its industry.

One of the most crucial, yet subjective, aspects of any business valuation is determining the specific company risk premium of the business being appraised.  The specific company risk premium varies with each company and is intended to be an adjustment to reflect a variety of circumstances inherent in the company and its industry.

For a business valuation analyst engaged in determining an appropriate specific company risk premium, the following factors should be considered (at a minimum) when considering an exit strategy:

One of the most crucial, yet subjective, aspects of any business valuation is determining the specific company risk premium of the business being appraised.  The specific company risk premium varies with each company and is intended to be an adjustment to reflect a variety of circumstances inherent in the company and its industry.

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