Risky Business: A Generous Helping of Company-Specific Risk

Business Valuation UpdateVol. 17 No. 6
June 2011
Ted D. Israel, CPA/ABV/CFF, CVA


A potential exists for valuation analysts to overestimate the company-specific risk premium when valuing small businesses. For purposes of this discussion, company-specific risk and unsystematic risk are used interchangeably. “Small business” is defined ...