Net Working Capital: A Key Component Used in Business Valuation

Co-Sponsored by the National Association of Certified Valuators and Analysts®  (NACVA®) 

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
Net working capital represents a vital aspect of business valuation, as it influences a company's enterprise value through projected cash flows, as well as its equity value based on excess or deficient net working capital at the valuation date. For valuation purposes, net working capital involves a more comprehensive analysis than the straightforward traditional accounting definition of current assets minus current liabilities. This course examines the concept of net working capital and highlights its significance in business valuation.

How You Will Benefit
After completing this course, attendees will be able to:

• Differentiate between enterprise value and equity value
• Differentiate between working capital and net working capital
• Understand the impact of net working capital on the valuation process

Take Aways
Understand how to determine net working capital and apply fundamental principles to determine an appropriate net working capital level. Then, apply and adjust for net working capital in the valuation of business enterprises and equity values.

Who Should Attend

Delivery Method Group Internet-Based Program Level Intermediate Advanced Preparation None Prerequisites Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.    Accounting 1   Finance 1 Total CPE Hours   2

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