Unsystematic Risk Premia in Privately Held Companies How does a valuation professional quantify and defend the unsystematic risk premia (URP)? Is the latter a factor that helps explain why CAPM is less frequently used valuing a privately held company? As for Total Beta, is that any better than the use of Beta? In this article, the author suggests if one accepts that imperfect diversification (ID) explains the risk premia, he suspects that the risk level is a function of the buyer pool or market participant pool and that characteristic will validate whether the base URP should be adjusted up or…
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of Accounting and Financial Services Firms In this article, Dr. Frederiksen discusses five key findings derived from a Hinge Marketing Survey of accounting and financial services firms. The findings provide actionable steps and an opportunity for firms serving in the industry to grow.
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Market sentiment seems to oscillate between a preference for growth and a desire for profitability now. Travis Harms, Mercer Capital’s Financial Reporting Valuation Group lead, discusses the challenges of managing and investing in early-stage companies. To read the full article in Mercer Capital’s Financial Reporting Blog, click: If it was Easy, We’d all be Rich. This article is republished from Mercer Capital’s Financial Reporting Blog. It is reprinted with permission. To subscribe to the blog, visit: http://mercercapital.com/category/financialreportingblog/.
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We mentally deposit money in buckets of current income, current assets, and future income. This instinctive categorization explains the popularity of so-called bucketing strategies for retirement income, whether segmented by time or type of spending. Michael Kitces, contributing writer for Financial Planning, explains how advisers can help overcome their irrational expectations. To read the full article in Financial Planning, click: Kitces: A New Hierarchy of Retirement Needs.
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Why Leaders Need to Identify Their Weaknesses Gaining an understanding of your weaknesses as a leader can help you take steps to compensate for them. Working with mentors and asking for feedback from your team can allow you to identify these weaknesses. Jayson Demers, CEO of AudienceBloom, shares some great tips. To read the full article in Entrepreneur, click: How to Recognize Your Biggest Weaknesses as a Leader.