Best Practices in Business Valuation—A Practical Approach to Advanced Issues and Applications
Co-Sponsored by the National Association of Certified Valuators and Analysts® (NACVA®) and Valuation Products and Services
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Covering the latest developments in the valuation profession in a straightforward manner and with an emphasis on practical application.
Are you tired of esoteric concepts and applications that few use and even fewer understand?
Are you tired of answers like, “When you look at it this way the answer is this, but if you look at it that way the answer is that?”
Do you scream when a presenter says “It depends” when asked a question, even a basic one?
This three-day course is for everyone, whether a first-year analyst or a seasoned BV veteran.
The bottom line is that, while the valuation profession has come a long way, we still can’t come together and agree on many—and we mean many—valuation issues.
This course will make you feel more comfortable that you know how to understand and apply valuation techniques in the most supportable way. It takes you through advanced issues and applications that you can use right away.
How You Will Benefit
After completing this course, attendees will be able to:
- Differentiate between the various Income Approach methods and data inputs
- Articulate the various risk analysis models and applications
- Calculate, select, and adjust valuation market multiples
- Assess the latest S corp court cases and how to use them
- Employ report writing tips
- Differentiate the valuation methods and reconciliation
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What You Will Cover
Who Should Attend
Day One:
The Income Approach, including the Capitalized Cash Flow Method and the Discounted Cash Flow Method
Key issues relating to the income approach, capitalized cash flow method and discounted cash flow method will be discussed.
- Differentiate between the various Income Approach methods and data inputs
- Apply best practices and avoid mistakes in the income approach, including discount rates, growth rates, normalization adjustments, Capitalized Cash Flow Method, and Discounted Cash Flow Method
- Assess how to apply and support probabilistic scenario analyses
Cost of Capital
Key issues and updates on the cost of capital will be discussed.
- Articulate the various risk analysis models and applications
- Analyze and apply the historical, supply side, and recommended risk rates
- Describe better methods for estimating company specific risks
- Describe the nuances of the competing Beta models
- Apply data from the Duff & Phelps Cost of Capital Navigator
- Prepare a supportable method for reconciling the use of D&P data in the Modified Capital Asset Pricing Model and the Build Up Model
- Assess how to best use the BVResources Cost of Capital Professional
- Identify advanced cost of capital techniques and data sources
Growth Rates
Key issues and updates on growth rates will be discussed.
- Apply processes to support long-term growth rates
- Develop an understanding inflation and GDP
- Explore supporting interim growth rates
Case Study and Sample Report
A case study and sample report will be reviewed and discussed with emphasis on the income Approach, including the Capitalized Cash Flow Method and the Discounted Cash Flow Method, cost of capital, and growth rates.
- Implement case studies and sample reports to best practices
- Implement report writing tips
- Differentiate the valuation methods and reconciliation
Day Two:
The Market Approach, including the Guideline Company Transactions Method and the Guideline Public Company Method
Key issues and updates relating to transaction methods, databases, and company multiples will be discussed.
- Calculate, select, and adjust valuation market multiples
- Identify best practices in applying the Guideline Company Transactions Method, including the level of reliability
- Research and select appropriate databases for guideline companies and completed transactions
- Identify best practices and the intricacies in selecting guideline public companies and calculating multiples
Pass-Through Entities, including Tax Affecting and Pass-Through Entities Premium Models
Key issues and updates relating to pass-through entities, tax affecting, and associated models will be discussed.
- Demonstrate the best way to present tax-affecting
- Review the use of S corp models and the so-called S corp premium
- Summarize the nuances of the IRS S Corp Job Aid
- Assess the latest S corp court cases and how to use them
- Carry out reconciling different values
Business Valuation and COVID-19
COVID-19’s impact to business valuation will be discussed.
- Articulate what is “Known or Knowable” and valuation dates
- Identify Subsequent events
- Discount rates
- Determine appropriate adjustments (i.e., premiums and discounts) to be applied to an indicated value
- Assess the effect on S corps
- Assess how to apply and support probabilistic scenario analyses
- Determine the use of government and other economic projections
Case Study and Sample Report
A case study and sample report will be reviewed and discussed with emphasis on transaction methods, databases, company multiples, pass-through entities, tax affecting, and COVID-19 considerations.
- Implement case studies and sample reports to best practices
- Implement report writing tips
- Differentiate the valuation methods and reconciliation
Day Three:
Discounts and Premiums, including Discounts for Lack of Marketability
Key issues and updates relating to discounts, premiums, and DLOM will be discussed.
- Apply the various Valuation Products and Services (VPS) DLOM option calculators and other models and templates, including: VPS Restricted Stock Study Quintile Calculator, Black Scholes/Chaffe Calculator, Finnerty Calculator, Ghaidarov Calculators, Longstaff Calculator, QMDM Template, Quantitative Methods Comparison Template, Illiquidity Premium Calculator, and C Corporation Equivalent Dividend Yield Calculator
- Differentiate among the most well-known restricted stock and pre-IPO databases, including: FMV Opinions, Pluris, and Valuation Advisors
- Analyze the various option pricing models, including: Black-Scholes/Chaffe, Longstaff, Finnerty, and Ghairdarov
- Evaluate various analytical methods, including: Wruck; Hertzel and Smith; Bajaj; Abbott; Ghairdarov; Katsanis; LEAPS; NERA CAPM and Mandelbaum-type analyses
- Assess the IRS DLOM Job Aid
Discounts and Premiums, Lack of Control and Control Premiums
Key issues and updates relating to discounts, premiums, and DLOC will be discussed.
- Determine the use of control premiums and minority discounts
- Explain the math and concepts behind control premium/minority discount data
Business Valuation Standards
Professional standards will be reviewed and discussed.
- Apply business valuation standards, along with the use of calculations, which includes two up-to-date sample calculation reports
Case Study and Sample Report
A case study and sample report will be reviewed and discussed with emphasis on discounts, premiums, and DLOM, DLOC, and professional standards.
- Implement case studies and sample reports to best practices
- Implement report writing tips
- Differentiate the valuation methods and reconciliation
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Non-Member |
Member |
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Three-Day Virtual Course (24 Hrs CPE) |
$1,950 |
$1,755 |
Authoritative books required with registration. *Additional fees apply.
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$500 | $450 |
CPE Hours
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For additional NASBA sponsorship information, including refund, complaint, and/or program cancelation policies, please click here.
