The purpose of this accounting seminar is to introduce you to key business valuation approaches with emphasis on the discounted cash flow method. This will include a closer look at the multiples methods and accounting valuation, as well as real options valuation.
You will quickly master various electronic tools and vital concepts required to obtain an accurate business valuation. You will also be called upon to use your judgment to ask – and answer – relevant questions as part of the valuation process.
GOALS
Learn powerful business valuation methods to be able to:
- Foresee the consequences of a strategic shift on the company’s value.
- Determine the maximum acquisition price or minimum sale price of a company.
- Assess the company’s fair market value.
- Fund a corporate acquisition.
Ascertain how to estimate main valuation parameters.
Recognize the benefits and limitations of each method.
IS THIS FOR YOU?
- Accounting and finance professionals, managers and executives (otherwise, we suggest you take Financial Literacy for Non-Financial Managers beforehand)
This program is for you if:
- You are called upon to take part in the business valuation process.
SPECIAL FEATURES
Topics of discussion will be determined based on needs voiced by participants.
Participants will receive a certificate of completion from Executive Education HEC Montréal.
Introduction to business valuation methods
- Valuation parameters and available data
- Caveats
Discounted cash flow method
- Estimation of cash flow based on financial statements
- Free cash flow to firm vs. free cash flow to equity
- Choice of forecast horizon
- Growth and risk assessment
- Calculation of discount rate
- Continuity value
- Surplus assets
Multiples methods
- Price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, price-to-sales (P/S) ratio
- Sources of information and choice of comparables
- Factors that influence multiples
Accounting valuation
- Tools for calculating adjusted book value
- Tips for valuating brands and other intangible assets
- Goodwill in the valuation process
Choice of methods and adjustment in line with specific circumstances
Depending on participants’ individual needs, several themes can also be addressed, including:
- Publicly traded vs. privately held business: Liquidity premium vs. control premium
- Venture capital investment: Limited horizon
- Natural resources and high-tech sectors, where a third method may be useful, namely real options valuation
TRAINING APPROACH
- Real-life case studies.
- Examples.
- Computer use.
- Excel sheets illustrating methods and concepts will be provided.
Presentation
Program
Instructors
GOALS
Learn powerful business valuation methods to be able to:
- Foresee the consequences of a strategic shift on the company’s value.
- Determine the maximum acquisition price or minimum sale price of a company.
- Assess the company’s fair market value.
- Fund a corporate acquisition.
Ascertain how to estimate main valuation parameters.
Recognize the benefits and limitations of each method.
IS THIS FOR YOU?
- Accounting and finance professionals, managers and executives (otherwise, we suggest you take Financial Literacy for Non-Financial Managers beforehand)
This program is for you if:
- You are called upon to take part in the business valuation process.
SPECIAL FEATURES
Topics of discussion will be determined based on needs voiced by participants.
Participants will receive a certificate of completion from Executive Education HEC Montréal.
Introduction to business valuation methods
- Valuation parameters and available data
- Caveats
Discounted cash flow method
- Estimation of cash flow based on financial statements
- Free cash flow to firm vs. free cash flow to equity
- Choice of forecast horizon
- Growth and risk assessment
- Calculation of discount rate
- Continuity value
- Surplus assets
Multiples methods
- Price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, price-to-sales (P/S) ratio
- Sources of information and choice of comparables
- Factors that influence multiples
Accounting valuation
- Tools for calculating adjusted book value
- Tips for valuating brands and other intangible assets
- Goodwill in the valuation process
Choice of methods and adjustment in line with specific circumstances
Depending on participants’ individual needs, several themes can also be addressed, including:
- Publicly traded vs. privately held business: Liquidity premium vs. control premium
- Venture capital investment: Limited horizon
- Natural resources and high-tech sectors, where a third method may be useful, namely real options valuation
TRAINING APPROACH
- Real-life case studies.
- Examples.
- Computer use.
- Excel sheets illustrating methods and concepts will be provided.