Term Paper on Valuation - Hypothesis

Hey,

Concerning my studies, I have to write a term paper this semester. Since I’m interested in corporate finance I decided to write about valuation of companies. In the paper I attempt to highlight the differences of valuing SMEs and large-sized companies.

Anyway, the paper has to base on at least one hypothesis. Do you have any ideas which issues I could discuss respectively? I thought that one might be the fact that SMEs reach a lower value due to a higher discount factor (caused by the risk).

However, I am not completely satisfied with this hypothesis and therefore, I’d like to start with another thesis that allows me to go more into valuation itself (comparing precedent transaction, multiples etc.). Do you think there might another reason why SMEs have lower multiples for example?

Many thanks in advance Regards

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