Business Valuation Course Outline

After completing this course, attendees will be able to:

Identify the fundamental steps to valuing a business, from beginning to end
Identify an appropriate valuation method within the valuation approaches based on the specific purpose and standard of value for a given valuation assignment
Determine the most appropriate financial analysis of a subject company as it relates to a specific valuation engagement
Identify the foundations of the business valuation analysis process as well as the value drivers that support a subject company’s value
Recognize the differences in the various standards of value for businesses and the nuances of their application in a business valuation engagement

Days 1 and 2: Business Valuations—Fundamentals, Techniques, and Theory (FT&T)

Structure the elements of a valuation engagement from financial and operational analysis through to a conclusion of value
Analyze financial and operational information for a business entity as it relates to a valuation engagement
Differentiate the methods found in the three approaches to valuation—Asset, Income, and Market, and determine when it is appropriate to use each approach
Identify methods and data sources for developing discount and capitalization rates
Determine appropriate adjustments (i.e., premiums and discounts) to be applied to an indicated value
Employ professional standards for the development and reporting of a valuation/calculation engagement

Day 3: Business Valuations—Applications and Calculations of the Income and Asset Approache

Determine a value using the Adjusted Net Asset Method under the Asset Approach
Determine when it is appropriate to use a Capitalization of Single-Period Earnings Method vs. Discounted Future Earnings Method under the Income Approach
Identify appropriate normalization adjustments to apply to a business entity’s balance sheet and income statement
Calculate a normalized benefit stream under the Income Approach

Day 4: The Market Approach—Exploring the Pricing Component

Recognize the theory behind the Market Approach including its rationale, standards of value, main methods, and governing principles.
Identify the key challenges in the application of the Market Approach and explain the current best practices used by valuation practitioners in overcoming and/or minimizing these challenges.
Determine when the use of the Completed Transaction Method and/or Guideline Public Company Method is appropriate under the Market Approach.
Identify the steps in selecting guideline companies and completed transactions relevant to the Subject Company.
Describe the most commonly used valuation multiples, their corresponding drivers, and applicability depending on what level of value is being sought.
Explain the process of adjusting valuation multiples to account for differences in size, growth, and business risk.

Day 5 (morning): Valuation in Action—Case Studies: Applying the Principles and Techniques

Identify the key challenges, requirements, and nuances in conducting a valuation analysis for various special purposes.
Identify the steps in the analysis and valuation of a company in a typical valuation engagement.
Apply the three main valuation approaches—Assets, Income, and Market in a live case.
Describe the key sections of a valuation report and how to connect the narrative to the quantitative analysis.
Explain the process of reconciling the different indications of value in the valuation analysis.

Day 5 (afternoon): Exam Preparation—CVA Proctored Exam and Peer Reviewed Business Valuation Report (Case Study)

Day 6: CVA Proctored Exam

The five-hour proctored exam is given at the Mercer University Atlanta classroom location on the Saturday morning following the training.