Newsletter May 2026

In recent years, some well-regarded academics have argued that the size effect for small companies has disappeared — and that valuators, therefore, shouldn’t include a size premium when valuing a small business. If you’ll be testifying in a case where the opposing expert makes this argument, former Kroll managing director Carla Nunes, CFA, ABV, says you’ll need ammunition to combat it.

According to Nunes, a rigorous analysis of the relevant data makes clear that the size premium remains appropriate. She and James Harrington, a director at Kroll, recently shared emerging research that demonstrates the continued existence of the size effect in a NACVA webinar. While the effect waxes and wanes over time, it does persist.