Vliv velikosti podniku na transakční násobitele

The Impact of the Company's Size on the Transaction Multiple

Jana Skálová (), Tomáš Podškubka and Petr Diviš

Politická ekonomie, 2018, vol. 2018, issue 1, 57-77

Abstract: This article focuses on the issue of company's size with connection to its valuation multiples. The phenomenon of company's size effect is described in theory and empirically tested. The knowledge of dependence on transaction multiples on company's size is essential for valuation and decision about acquisition or disinvestment. The article follows on the Jeřábek's and Čihák's article (2008). The aim of the article is to empirically verify the statement that the buyers are willing to pay relatively lower amount of money for smaller companies than in case of investment in larger companies. The aim is not to determine the specific amount of the size risk premiums but demonstrate multiples increase with company's size multiple in connection to company's size. Furthermore, it is necessary to take into account bigger companies have, in comparison with smaller entities, not only higher relative value, but also absolute. In other words, it means higher transaction multiple or lower discount rate.

Keywords: company size; transaction multiple; impact; statistics; spearman correlation (search for similar items in EconPapers)
JEL-codes: F23 G12 G34 (search for similar items in EconPapers)
Date: 2018
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DOI: 10.18267/j.polek.1181

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