Description
Archive 2025-207: Best Practices: Valuing Small Businesses – The Cost of Capital
**Webinar 207: Live Broadcast Date: November 6, 2025 1:00-3:00 pm ET**
VPS STRAIGHTtalk Webinar Series:
Speakers: Jim Hitchner, CPA/ABV/CFF & Harold Martin, CPA/ABV/CFF, ASA, CFE
Webinar Description:
Join us for an in-depth, practical session that takes the mystery out of cost of capital. We’ll dive into key models and data sources—like the Kroll CRSP, risk premium study, build-up model, and modified CAPM—while tackling real-world issues such as measurement periods, equity risk premiums, size and industry premiums, and company-specific risk. You’ll get insights from both Kroll’s latest recommendations and Damodaran’s perspectives, plus learn how to reconcile differences and run quick “sanity checks” on your results. Most importantly, we’ll show you how to confidently defend your cost of capital in depositions, trials, and other high-stakes settings. This is a can’t-miss webinar for anyone who wants to strengthen both their technical toolkit and their credibility.
Learning Objectives:
Using a detailed case study (including report language), the participant will learn:
- How to apply best practices in the calculation of cost of capital
- How to defend your analysis
- How to select the proper level of reliability of your cost of capital
Webinar Outline:
- Detailed calculations of various equity return results
- Kroll Navigator cost of capital components and choices
- BVR Cost of Capital Professional components and choices
- How to defend their cost of capital in a deposition, jury trial, bench trial, arbitration, or administrative hearing
- Detailed examples of numerous applications
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- Kroll CRSP
- Kroll risk premium study
- Build-up model
- Modified capital asset pricing model
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- Dealing with differences
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- Measurement time periods
- Equity risk premiums (ERPs)
- Conditional vs. unconditional ERPs
- Adjusted vs. unadjusted ERPs
- Historical vs. supply-side ERPs
- Size premiums, including deciles 10, 10b, and 10z
- Industry risk premiums
- Specific company risk
- Risk indicators
- Risk-free rate – adjust or not?
- Betas including adjustments (Hamada)
- Debt betas
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- Damodaran’s views on ERPs, size premiums, and company-specific risk
- How to reconcile the results when different
- How to defend your results
- Easy sanity check on cost of capital
- Kroll recommended ERP
- Selecting weights in the WACC
- Tax rates in the WACC
- Control vs. minority in the WACC
- Capitalization rates and growth
Handouts:
- VPS Webinar Slides
- Related Article
- Access to a Video Recording of the Program
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