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
Jan Lasák chairs M&A FORUM 2026
KŠB partner Jan Lasák served as academic lead and moderator of M&A FORUM 2026, the eighth edition of the conference organised by Akademie C. H. Beck, held on 4 November at Stages Hotel Prague. The event has become a fixture in the Czech M&A calendar, bringing together leading practitioners from private practice, the judiciary, academia and in-house legal teams.
Richard Schmidt spoke at the Czech Competition Authority’s St. Martin's Conference 2026
KŠB attorney Richard Schmidt spoke at this year's St. Martin's Conference, hosted by the Czech Competition Authority (CCA) in Brno on 11–12 November 2026. The conference is a fixture of the Czech competition law calendar, drawing leading practitioners from home and abroad.
Helena Navrátilová on Three Decades of the Advent Concerts of Good Will
KŠB partner Helena Navrátilová was recently interviewed on S dobrou vůlí, the podcast of the Committee of Good Will – Olga Havel Foundation. Speaking with editor Veronika Širc, Helena talked about the origins and history of the Advent Concerts of Good Will, which KŠB has been organizing for over thirty years.
