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Linking the Market Approach to the Income Approach: A Simulation Study




 Linking the Market Approach to the Income Approach: A Simulation Study
CPE Credit

Program Type: Recorded Webinar (Audio, PPT)
Program Level: Overview
Prerequisites: None
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: Two (2) hours
Fields of Study: Finance
Item Number: 15PBVNOLA26A
Shipping Weight: 0lbs. 0oz.
Price: $110.00
Program Description

When an appraiser uses the Market Approach, the pricing multiples reflect items that typically transfer in an asset or stock sale. When an appraiser uses the Income Approach, he or she adjusts the implied value from the capitalization or Discounted Cash Flow Method for excess or deficient net working capital. The purpose of this simulation study is to reconcile the contrasting treatment of net working capital for the Market and Income approaches and their cascading effects on companies. For example, one must consider the impact of having excess cash on the firm's estimated value and financial statements. Finally, this webinar will evaluate several adjustments to the pricing multiples advocated in business valuation literature.

Learning Objectives

After completing this webinar, attendees will be able to:

- Identify the net working capital and other adjustments appraisers often make to the value implied by the Market and Income approaches
- Analyze the impact of excess or deficient working capital on the firm's estimated value and financial statements
- Evaluate selected adjustments to the pricing multiples that authors have recommended in the business valuation literature

Who Should Attend

CPAs, attorneys, valuation practitioners providing expert witness testimony

Presenter(s)

M. Mark Walker, PhD, CFA, CBA
Dr. M. Mark Walker is an associate professor of finance at the University of Mississippi. His teaching and research interests include corporate finance, investments, and business valuation. He has written over 25 articles in academic and practitioner journals. Dr. Walker serves as the chair of the IBA Board of Governors. He also serves as a member of the board of trustees for the Financial Executives Research Foundation (FERF).