Describing the Specific Risk Premium

5 (2 votes)

It often seems like the Specific Company Risk Premium has simply been pulled out of the appraiser's hat, and while there may be some truth to that, look for how the appraiser ties the economic, industry, and company-specific data together to support the selected rate.

Shawn Hyde

CBA, CVA, CMEA, BCA

International Society of Business Appraisers

Shawn Hyde, CBA, CVA, CMEA, BCA has over 20 years of valuation and appraisal experience in numerous industries. He is a Certified Business Appraiser, Certified Valuation Analyst, Certified Machinery & Equipment Appraiser, and a Business Certified Appraiser. He has written and taught courses for the Institute of Business Appraisers (IBA), the National Association of Certified Valuators and Analysts (NACVA), and the International Society of Business Appraisers (ISBA). He has served on the IBA’s Education Board, and the IBA’s Board of Governors, and is a past Editor in Chief of the IBA’s professional journal, Business Appraisal Practice.