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 and Growth Rates
Key issues and updates on the cost of capital and growth rates will be discussed.
- Apply processes to support long-term growth rates
- Demonstrate an understanding of inflation and GDP
- Practice supporting interim growth rates
- 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
Case Study and Sample Report
A case study and sample report will be reviewed and discussed.
- Associate case studies and sample reports to best practices
- Demonstrate 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
- Locate and select appropriate databases for guideline companies and completed transactions
- Identify best practices and the intricacies in selecting guideline public companies and calculating multiples
S Corps and Pass Through Entities
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
- Calculate 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
Business Valuation Standards
- Apply business valuation standards, along with the use of calculations
- Describe the BV Standards
- Identify how to calculate engagements
- Identify the AICPA calculations FAQs
- Identify the AICPA subsequent events toolkit
Day Three:
Discounts and 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
Control Premiums and Discounts
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
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Non-Member |
Member |
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Three-Day Virtual Course (24 Hrs CPE) |
$1,990 |
$1,791 |
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eBook $89 | |
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eBook $35 | |
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eBook $169 | |
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eBook $169 | |
| (*Books available during registration. eBooks will be delivered electronically within 2-3 business days.) | ||
CPE Hours
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For additional NASBA sponsorship information, including refund, complaint, and/or program cancelation policies, click here.
