Applicability of Small Size Premiums in Determining the Fair Value of Shares and Appropriate Consideration
In the article, the authors focus on one of the most pressing issues currently pertaining to company valuations for the purposes of determining the fair value of shares and the amount of reasonable consideration (e.g. in squeeze-out situations).
The Czech Supreme Court’s and Constitutional Court’s case law has not yet explicitly held whether the so-called “small size premium” (also “small cap premium”) can be applied to the discount rate in such cases.
The issue has been subject to a number of court cases. The authors believe there are a number of compelling reasons for applying the small size premium, including the extensive case law of the Delaware courts, to which the Constitutional Court, among others, explicitly refers.
The article is available in the double issue 23-24 of Legal Digest from 2021 and is also available on Beck-online at the link here.
Other articles
KŠB Supports Smetana Litomyšl’s Charitable Grand Finale
The 68th annual Smetana Litomyšl Festival closed this year with the Grand Finale – Italian Film Night, which took place under the patronage of our law firm. The Czech Radio Symphony Orchestra, conducted by Tomáš Brauner, performed celebrated film music by Nino Rota, Luis Enrique Bacalov and Ennio Morricone in the second courtyard of Litomyšl Castle, which was also broadcast live on ČT Art and Czech Radio Vltava.
Jan Lasák Speaks at Balkan Legal Forum 2026
KŠB partner Jan Lasák took part as a panellist at this year’s Balkan Legal Forum 2026, one of the leading conferences focusing on the legal market in Central and South-Eastern Europe.
KŠB Partner Tomáš Sequens Speaks at the “Law and the Environment” Conference
Organized by Česká justice and Ekonomický deník at Truhlárna Karlín in Prague, the “Law and the Environment” conference brought together representatives from the government, the business sector, the professional community, and the legal profession to discuss the current challenges related to environmental protection, decarbonization, and the regulatory framework for doing business.
