Size Premium for Private Company ($22M Revenue)

Hey guys,

 I am currently valuing a private company with $22M for my private equity firm. The company has $725,000 <a href="/finance-dictionary/what-is-earnings-before-interest-tax-depreciation-and-amortization-EBITDA">EBITDA</a> and is in the HVAC industry (heating, ventilation, air conditioning). 

I'm currently doing my best to estimate WACC, however I'm not sure what I should add as a size premium to the cost of equity.

Also, the liabilities are greater than assets for this specific company, therefore equity is in a natural deficit. (est WACC off public comp capital structure).

Let me know if you guys can help, and if anyone is interested more, feel free to PM me.

Best, Young Owen

1 Comments
 

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