Business Valuation Techniques
Service Description
Learning Objectives 1. Understand the key principles and importance of business valuation. 2. Explore different valuation techniques and when to apply them. 3. Analyze financial statements to derive valuation inputs. 4. Utilize tools and models to perform accurate valuations. 5. Interpret and communicate valuation results effectively. Outcomes By the end of the program, participants will: 1. Have a strong foundation in business valuation concepts. 2. Be able to apply various valuation methods confidently. 3. Understand the impact of financial performance, market trends, and risks on valuation. 4. Use valuation insights to support strategic decisions. 5. Present valuation findings to stakeholders in a clear and compelling manner. Contents Module 1: Introduction to Business Valuation • Definition and importance of business valuation. • Scenarios requiring valuation: investments, mergers, sales, and disputes. • Key valuation principles and standards. Module 2: Financial Statement Analysis for Valuation • Reviewing income statements, balance sheets, and cash flow statements. • Identifying valuation-relevant metrics (e.g., EBITDA, free cash flow). • Adjusting financials for normalization and comparability. Module 3: Valuation Techniques Overview • Market-based approaches: -Comparable company analysis (CCA). -Precedent transaction analysis. • Income-based approaches: -Discounted cash flow (DCF) analysis. -Earnings capitalization. • Asset-based approaches: -Book value and adjusted net asset value. -Liquidation value. Module 4: Applying Discounted Cash Flow (DCF) Analysis • Forecasting future cash flows. • Determining discount rates using Weighted Average Cost of Capital (WACC). • Calculating terminal value and present value. Module 6: Other Valuation Considerations • Valuing startups and high-growth businesses. • Handling intangible assets (e.g., brand value, IP). • Adjusting for risk and uncertainty in valuation. Module 7: Presenting Valuation Results • Creating valuation reports and presentations. • Explaining assumptions and methodologies used. • Addressing stakeholder questions and objections.