| The Use of Regression Analysis in the Market Approach
Product Deactivated 11/10/2022 AB
Program Type: VideoCast (Audio,Video, PPT Presentation)
Program Level: Update
Prerequisites: A good understanding of Excel 2007 or above is helpful. Familiarization with regression is also helpful. Attendees will be given a live demonstration on how to implement Excel's regression utility to determine outliers in a sample of comparables. Regression will also be employed to calculate the appropriate Revenue and Cash Flow multipliers from a sample of comparables.
Advanced Preparation: None
Delivery Method: Group Internet-Based
CPE Credits: One (1) Hour
Fields of Study: Accounting
Shipping Weight: 0lbs. 0oz.
Attendees will learn how to use Excel's regression analysis and to apply it to Market Approach methodologies. Learn how regression analysis can filter a sample of comparables to statistically identify outliers that are skewing your data significantly. Attendees will be shown how to use regression to statistically predict the proper revenue multiplier and cash flow multiplier for the subject, thus, eliminating the messy subjective selection process. Learn why every appraiser makes a critical error when he selects the upper or lower quartile or standard deviation of the multipliers to apply to his or her subject company.
After completing the webinar, attendees will be able to:
- Describe how regression analysis will put your Market Approach on a scientifically sound footing
- Identify the statistical tool that can eliminate the embarrassingly huge differences in values that typically occur when using current methodologies to select the gross revenue multipliers and the cash flow multipliers
- Use the basic data from Pratt's Stats or Bizcomps to be able to statistically predict the appropriate multipliers for your subject
- Identify how the challenges to your selection process for multipliers will be eliminated, including no more huge gaps between multiplier values
Who Should Attend
C. Fred Hall, III, MBA, CBA, CVA
Mr. C. Fred Hall III received a BS degree from UC Berkeley and an MBA from San Diego State University. He spent four years with a major California bank as a business analyst and a commercial loan officer. He subsequently acquired and managed a home center which he grew to five million dollars. Mr. Hall personally wrote scores of computer programs that involved every aspect of the operations, including inventory control, general ledger, accounts receivable, accounts payable, and a complex payroll program. He spent seven years with Sunbelt and Murphy Business as a business appraiser and broker, and was a partner in Compass Point Capital, a mergers and acquisitions company. He received a Certified Business Appraiser™ (CBA™) designation with the Institute of Business Appraisers™ (IBA™) and a Certified Valuation Analyst® (CVA®) designation with the National Association of Certified Valuators and Analysts™ (NACVA®).