Why can’t I just paste a US public EV/EBITDA onto a Czech SME?

A liquid listed peer is a different instrument from a private control stake. Size (small-cap multiples), illiquidity (order of 15–30%), and basis (pre-synergy control prices vs public trading prices) stack. Skipping them is the most common valuation error and can overstate value by about a factor of two for a €3m-EBITDA Czech company vs US listed peers.

Does Misano already bake these discounts into the multiples band?

Yes for the instrument. The multiples benchmark is European lower-mid-market SMEs on a control-transaction, pre-synergy, evidence-graded basis — not a US large-cap public table with a feel-based haircut. Mid band is headline FMV for a financial buyer. Detail: misano.ai/guides/multiples and misano.ai/guides/fair-market-value-for-a-financial-buyer.

Is the size premium in WACC the same as the size discount on multiples?

No. Size premium in Ke (3.0% when revenue < 100M, else 1.5%) is a Damodaran FCFF@WACC discount-rate input. The size effect on multiples is priced in the multiple itself. Do not collapse them. See misano.ai/guides/dcf-is-a-cross-check-not-the-headline.

Should I add another 20% illiquidity slider on top of Misano’s band?

Not as a default. Misano’s LMM SME control bands already sit on the private control-transaction instrument. A manual illiquidity slider on top is not required for every deal and is not a license to blend three comps tables — source cascade then metric cascade still pick exactly one path.

Size and illiquidity discounts stack.

Q: Should I add another 20% illiquidity slider on top of Misano’s band?

Not as a default. Misano’s LMM SME control bands already sit on the private control-transaction instrument. A manual illiquidity slider on top is not required for every deal and is not a license to blend three comps tables — source cascade then metric cascade still pick exactly one path.

A private SME is not a liquid listed peer. Pasting a US public EV/EBITDA onto a €3m-EBITDA Czech company usually misses three stacked adjustments treated as one haircut.

Three discounts, stacked — not one

Size: ~€2m EBITDA trades at a structurally lower multiple than the same business at ~€50m EBITDA. Small-cap risk is priced in the multiple.
Illiquidity: a private stake cannot be sold this afternoon. Order of 15–30% of value depending on study/situation.
Basis: private control-transaction benchmarks are pre-synergy control prices. Liquid public comps are a different instrument. Comparing an SME to liquid US listed peers without these adjustments is the most common valuation error — together they can overstate value by about a factor of two for a €3m-EBITDA Czech company vs US listed peers.

What Misano already does

Multiples benchmark (misano.ai/guides/multiples) is European lower-mid-market SMEs, control-transaction basis, pre-synergy, evidence-graded — not a US large-cap public table you adjust by feel.
Mid band = headline FMV for a financial buyer (misano.ai/guides/fair-market-value-for-a-financial-buyer). Strategic premia/auction tops out of scope.
Source cascade then metric cascade pick exactly one path (custom→niche→NACE; EV/EBITDA→P/E→EV/Revenue). Discounts are not a license to blend three comps tables.

Not the same as size premium in WACC

Size premium in Ke (3.0% when revenue < 100M, else 1.5%) is a Damodaran FCFF@WACC discount-rate input, not a multiples haircut. See misano.ai/guides/dcf-is-a-cross-check-not-the-headline and misano.ai/guides/how-to-value-a-private-company. Do not collapse them.

What this is not

Not claiming every deal needs a manual 20% illiquidity slider on top of Misano’s LMM SME control bands.
Not a rewrite of how-we-value-companies-at-scale / how-to-value-a-private-company.

Get started at https://app.misano.ai/login. From €39/month billed annually, 14-day money-back, no sales call. Product path: misano.ai/scout.

See also: misano.ai/guides/how-to-value-a-private-company, misano.ai/guides/multiples, misano.ai/guides/fair-market-value-for-a-financial-buyer, misano.ai/guides/dcf-is-a-cross-check-not-the-headline, and misano.ai/guides/value-band-is-triangulated.