Business Valuations: Fundamentals, Techniques & Theory*

QAS CPE† Hours: 12
PS—LO:M, PL:L, P:L
FoS—AA:1, M:1, SK&A:9, TX:1

Fundamentals, Techniques & Theory (FT&T) is a necessary resource for anyone pursuing business valuation services. Used by over 9,000 valuators nationwide, this course is the comprehensive workbook on performing business valuations.  The 2004 edition, which incorporates significant updating from 2003, takes you step-by-step through the theories and methodologies of performing a business valuation, providing you with a complete understanding from the basic to the most sophisticated topics being discussed by today’s leading business valuators.  This is NACVA’s most highly recommended course.  You will learn how to define value, analyze historical financial statements, construct/analyze economic and normalized financial statements, distinguish and convert pre-tax and after-tax rates, perform a comparative analysis, allocate components of value, select proper income, estimate future earnings, select and apply the proper valuation method, select and determine appropriate capitalization rates, determine when marketability and minority discounts are applicable, and write a valuation report. Includes interactive online study questions and testing capability.

Business Valuations:  Case Analysis—Income and Asset Approaches*

QAS CPE† Hours: 12
PS—LO:M, PL:M, P:M
FoS—AA:2, CS:1, M:1, SK&A:7, TX:1

Case Analysis is an excellent follow-up to Fundamentals, Techniques & Theory.  Updated annually, this training manual will provide the valuator with solutions to the wide variety of issues and decisions one confronts in a business valuation.  Devoted entirely to an actual case study, the course provides the ultimate learning experience with practical applications to real situations.  You will work your way through the methodologies and theories that must be considered in making and supporting valuation decisions, using a manufacturing firm for an estate valuation.  The course includes valuation practice standards, defining the valuation engagement, obtaining the necessary information, search for adjustments, and financial statements—including: review of company data, common size analysis, ratio analysis, and comparative analysis. Also covered are applied methods of valuation, including adjusted net assets, capitalization of earnings, price earnings ratio, dividend paying capacity, excess earnings, discounted earnings, and justification of purchase; plus much more. Includes interactive online study questions and testing capability.

Business Valuations: Case Analysis—The Market Approach*

QAS CPE† Hours: 8
PS—LO:M, PL:M, P:M
FoS—SK&A:8

To properly perform a business valuation you should consider all three approaches to determining value—the income, asset, and market approach.  If you don’t, you could fall short in your value determination and find yourself in violation of established industry standards.  For this reason, NACVA considers this training imperative.  In this “How To” course you will learn to use market data to value your subject company, locate and identify the best market comparables, calculate the appropriate adjustments to assure the best market fit, and determine which indicators of value make the most sense. To be prepared to take on any valuation challenge every valuator should have this course of study.  The course materials come with the latest edition of Shannon Pratt’s book—The Market Approach to Valuing Companies—to round out your library and give you all the information you need to utilize this methodology appropriately in your valuation engagements. Includes interactive online study questions and testing capability.

Advanced Valuation Discounts and Premiums‡

QAS CPE† Hours: 8
PS—LO:M, PL:M, P:M
FoS—SK&A:8

This extensive training manual passes all the tests for being an excellent course. It is thorough, complete, resourceful and practical, and shows you the entire playing field. You will learn where discounts/premiums come from, what the judicial precedents are, and how, when, and where to apply marketability and minority interest discounts. This course includes discussion of most all the important articles and debate published on this topic. A library in themselves, these materials will be an invaluable resource of relevant and useful information on Valuation Discounts & Premiums. Given that this could be the most difficult and disputable area of a valuation, you cannot afford to sell yourself short. This unique industry resource will undoubtedly serve as a cornerstone in your business valuation library. Includes interactive online study questions and testing capability.

Corporate Valuation: Theory and Application*

QAS CPE† Hours: 12
PS—LO:M, PL:M, P:M
FoS—SK&A:12

Corporate Valuation: Theory and Application completes NACVA’s Five-Day Business Valuation and Certification Training Center. The course begins with a comprehensive overview of valuation theory and goes on to explore the conceptual underpinnings of value, appropriate standards and their application, fundamental analysis, forecasting, and the income and market approaches. The course content includes case studies and exercises to illustrate and reinforce critical concepts. The course begins with a review of valuation theory and the qualitative and quantitative drivers of value. The course also explores the relative merits of differing techniques when valuing companies for tax, financing, investment, acquisition and other purposes. Next, the course addresses advanced valuation theory and the fundamental techniques in previous materials. It examines alternative valuation approaches and the requisite adjustments for use in a tax planning versus a transaction context. The course concludes with two comprehensive case studies. First, students explore thoroughly the multi-period discounted cash flow approach, including identifying adjustments to net cash flow, development of the discount rate using CAPM, and computation and reconciliation of terminal value. Next, the same case is used to explore the development of earnings metrics and valuation multiples derived from comparable public companies and transactions and their application to various income and asset measures of the subject enterprise. Includes interactive online study questions and testing capability.

Current Update in Valuations ‡

CPE Hours: 12

Current Update in Valuations is required training for NACVA’s credentialed (CVA/AVA) members for fulfilling periodic recertification requirements.  This fluid training program is designed to keep you abreast of new developments in Case Law, Theory, Practice and Standards.  The update component of this training is critical to valuators of all levels of experience because it disseminates knowledge that can only be obtained by reviewing hundreds of industry communications each year.

 Current Update in Valuations also touches on ethics issues which, as practitioners, you always need to be aware of, and works with you to help refine your valuation report writing skills.  Drawing from industry standards and sample reports, Current Update will enable you to gain helpful perspective and enlighten you to resources certain to enhance the quality of your reports.  A highly relevant component of this training is the review of all the industry standards (NACVA, ASA, IBA, USPAP, IRS, etc.), giving you valuable insight especially useful when called upon to critique another valuator’s report or defend your own report in court. The knowledge you gain of applicable industry standards will be reflected in the quality of your reports, and serve to help you create a strong impression with clients and a powerful presentation on the witness stand.  This one-of-a-kind course is one you can look forward to, and one that you will come to depend on for ongoing development in business valuation theory and practice.

Capitalization/Discount Rates: The Value of Risk

CPE Hours: 12

This training manual is one of the definitive works on Cap/Disc Rate determination.  In one place you can learn the field of methodology most commonly employed in determining rates.  Here you will learn the pros and cons for each method, why one method should be chosen over another in a given situation, how to avoid the typical pitfalls like not matching the rate to the proper valuation method, when and where to use a pre-tax versus after-tax rate, how to identify the proper components that go into developing a rate, how to develop a rate, and most importantly, how to defend the rate you developed.  Other subjects include where to find information to develop the rate, supporting documentation, and the difference between a discount rate and a capitalization rate.  This solid, substantive, up-to-date training manual gives you just about everything you need to complete your resource library. The course comes packaged with the newest edition of Shannon Pratt’s book, Cost of Capital—Estimation and Applications.

Effective Litigation Support and Expert Testimony

CPE Hours: 16

For a business valuator, becoming involved in litigation consulting and expert testimony is a foregone conclusion. The only question is: When? Sixty percent of all valuation work centers on current or potential litigious environments. This course is possibly the best self-study training you will find on this topic. That’s because it includes a training video featuring one of the nation’s authorities in a mock trial demonstrating and commenting on all his expert testimony skills. To complement this training video you will receive a workbook designed to focus on key points and reinforce the critical skills one must possess to be proficient in this area. Packaged along with the video and workbook is an excellent book entitled, Cross Examination: The Comprehensive Guide for Experts, by Steven Babitsky, Esq. and James J. Mangraviti, Jr., Esq., to use for training and future reference in providing litigation consulting. This book is designed to be a comprehensive yet easy-to-use guide for expert witnesses preparing for cross-examination. By following the techniques outlined in the book and by understanding the types of questions that may be asked, you will be well on your way to excelling during cross-examination.

Valuation Methods: Alternatives and Decision Criteria*

CPE Hours: 8

Determining/deciding the most appropriate valuation method to apply in valuing a business enterprise is often the subject of tremendous debate.  Everyone seems to have his or her own opinion or sometimes no opinion at all.  Valuators can not afford to be closed minded to the many alternatives and must be clear as to why one method might be preferred over another. The fact of the matter is each valuation method has its place, depending on the circumstances.  Furthermore, depending on the method you have chosen to employ, other aspects of the valuation process may be affected, such as capitalization/discount rate determination, marketability/minority interest discounts taken, and type of earnings used.  All these aspects are interrelated, and if the valuation method is faulty, the entire valuation will falter.  This well-balanced and complete self-study course provides guidance with discussion on the pros and cons of each application, when and where each method might be most appropriate, and the important “other” considerations in employing one valuation method over another.  Having taken this course, you will be more comfortable in your decisions and better prepared to defend them.

* Available as a seminar in the Business Valuation and Certification Training Center

† NACVA's five-course Business Valuation and Certification Training self-study program meets QAS requirements.

‡ Consultants' Training Institute seminar offering