Politická ekonomie 2018, 66(1):57-77 | DOI: 10.18267/j.polek.1181

Vliv velikosti podniku na transakční násobitele

Jana Skálová1, Tomáš Podškubka2, Petr Diviš3
1 Jana Skálová (jana.skalova@vse.cz), Vysoká škola ekonomická v Praze, Fakulta financí a účetnictví; TPA Audit, s. r. o
2 Tomáš Podškubka (tomas.podskubka@tpa-group.cz), TPA Valuation & Advisory, s. r. o.
3 Petr Diviš (petr.divis@tpa-group.cz), TPA Valuation & Advisory, s. r. o.

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

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
JEL classification: F23, G12, G34

Accepted: February 9, 2018; Published: February 1, 2018  Show citation

ACS AIP APA ASA Harvard Chicago IEEE ISO690 MLA NLM Turabian Vancouver
Skálová, J., Podškubka, T., & Diviš, P. (2018). The Impact of the Company's Size on the Transaction Multiple. Politická ekonomie, 66(1), 57-77. doi: 10.18267/j.polek.1181
Download citation
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Open full article

    References

    1. Abrams, J. B. (2010). Quantitative business valuation: a mathematical approach for today's professionals. 2. vyd. Hoboken, N. J.: Wiley. ISBN 978-0-470-39016-0.
    2. Baethe, J., Kirsch, et al. (2010). On the Myth of Size Premiums in Corporate Valuation: Some Empirical Evidence from the German Stock Market. Journal of Applied Research in Accounting and Finance (JARAF), 5(1), 2-15.
    3. Bernström, S. (2014). Valuation: the market approach. Chichester: Wiley. ISBN 978-1-118-90390-2. Go to original source...
    4. Dijk, M. (2011). Is Size Dead? A Review of the Size Effect in Equity Returns. Journal of Banking and Finance, 35(12), 3263-3274. Go to original source...
    5. Grabowski, R. J., Harrington, et al. (2015). Valuation Handbook: Guide to Cost of Capital. Hoboken, N. J.: Wiley. ISBN 978-1-119-07022-1.
    6. Hindls, R. et al. (2004). Statistika pro ekonomy. Praha: Professional Publishing. ISBN 80-86419-59-2.
    7. Hitchner, J. R. (2006). Financial valuation: applications and models. Hoboken, N. J.: Wiley. ISBN 978-0-471-76117-4.
    8. Horowitz, L. J., Loughran, T., Savin, N. E. The disappearing size effect. Research in Economics, 54(2), 83-100.
    9. Ibbotson SBBI (2014). Classic Yearbook: Market Results for Stocks, Bonds, Bills, and Inflation. Chicago: Morningstar. ISBN 978-0-9849500-4-1.
    10. Jeřábek, T., Čihák, P. (2008). Kvantifikace prémie za velikost pro střední Evropu. Odhace a oceňování majetku, 1(2), 44-49.
    11. Liu, W. (2006). A Liquidity-augmented capital asset pricing model. Journal of Financial Economics, 82(3), 631-671. Go to original source...
    12. Mařík, M. (2007). Metody oceňování podniku: proces ocenění - základní metody a postupy. 2. vyd. Praha: Ekopress. ISBN 978-80-86929-32-3. Go to original source...
    13. Poljakov, N., Šenk, M. (2016) Po Prazdroji sahají Japonci. Asahi nabízí za pivovary ze skupiny AB InBev přes 200 miliard korun. Hospodářské noviny, 13. 12. 2016. [Cit.2017-19-06.] Dostupné z http://byznys.ihned.cz/c1-65553470-po-prazdroji-sahaji-japonci-asahi-nabizi-za-stredoevrospke-pivovary-ze-skupiny-ab-inbev-pres-200-miliard-korun
    14. Pratt, S. P. (2005) The market approach to valuing businesses. 2. vyd. Hoboken, N. J.: Wiley. ISBN 978-0-471-69654-4.
    15. Pratt, S. P., Nivulita, A. V. (2008) Valuing a business: the analysis and appraisal of closely held companies. 5. vyd. New York: McGraw Hill. ISBN 978-007-144180-3.
    16. Peters, J. O. (1995). Adjusting Price/Earnings Ratios for Differences in Company Size - An Update. Business Valuation Review, 14(3), 121-123. Go to original source...
    17. Wang, X. (2000). Size effect, book-to-market effect, and survival. Journal of Multinational Financial Management, 10(3-4), 257-273. Go to original source...

    This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), which permits non-comercial use, distribution, and reproduction in any medium, provided the original publication is properly cited. No use, distribution or reproduction is permitted which does not comply with these terms.


    Return to the content