Advanced Business Valuation

PURPOSE OF THE COURSE

The Advanced Business Valuation training course teaches delegates to prepare robust valuations in a commercial context. Calculating the value of a potential acquisition involves far more than plugging numbers into a series of standard calculations.
As well as teaching the main methods used to value companies emphasis is placed on understanding risks and synergies and the potential returns on a transaction.

Case studies and scenarios are employed to help delegates think through the dynamics of competitive situations. At all stages our tutors will be focused on teaching practical strategies that can be taken back to your business and put into immediate effect. You will leave the course with templates and methodologies that can be taken back to your business and used to give an immediate professional edge to business valuation.
 
Taught by an internationally experienced corporate M&A practitioner this two day course gives delegates a solid grounding in the approaches and techniques used by some of the world’s best companies to arrive at sensible valuations and minimize the risk of overpaying.

WHAT WILL DELEGATES LEARN

Delegates will learn how to:

• Arrive at valuations that take full account of the commercial context;
• Master the main cash flow, market multiples and asset based approaches to company valuation;
• Extract information from published accounts and seller memorandums for business valuation;
• Arrive at realistic estimates of synergies and use them to calculate potential deal returns;
• Use the due diligence process to refine valuations;
• Understand the valuation approaches of different types of buyers and how that influences the final strike price.
• Avoid overpaying.

ABOUT OUR TUTORS

All our tutors are veterans of numerous transactions as both corporate managers and professional advisors.

Lead tutor on Advanced Business Valuation is Robert Kemp.  After a successful corporate career during which he was involved in acquisitions on virtually every continent for FTSE 100 company Associated British Foods plc, Robert founded a successful consulting practice advising corporate and private companies on all aspects of M&A activity.

COURSE STRUCTURECONTENTS

Business Valuation Overview

• Main approaches to business valuation;
• Commercial context of valuation;
• Establishing strong valuation disciplines.

Technical Foundations

• The mathematics of discounted cash flow (DCF):
  - Net present value;
  - Internal rate of return;
  - Terminal values;
• Cost of capital;
• Equity and debt;
• Enterprise value.

Extracting Financial Information for Valuation

• Types of information;
• Removing distortions;
• Dealing with creative accounting and aggressive forecasts;
• Forecasting income statements and balance sheets;
• The correct cash flow for each approach.

DCF Methods – The Income Approach

• Structuring the DCF calculation;
• Which cash flows are relevant?
• Approaches to tax and inflation;
• Different approaches to risk analysis;
• Dividend valuation models.

Valuation by Multiples – The Market Approach

• PE based multiples;
• Other multiple methods;
• Listed and unlisted companies;
• The importance of gearing.

Asset Based Valuations

• Constructing an asset based valuation;
• Common problems with asset based valuations.

Strategic Deal Value

• Valuing synergies;
• Strategic value calculations;
• Taking account of integration costs and risks.

Valuation in a Commercial Context

• Weighting valuation calculations for qualitative issues;
• Assessing strategic fit;
• Understanding the financial buyers perspective;
• Who else is in? Valuation in a competitive context;
• The three values – intrinsic, strategic and strike price;
• Valuation at different steps in the acquisition process;
• Recognise the signs of overpaying.

Due Diligence Inputs to Valuation

• Structuring due diligence to collect valuation information;
• Reflecting due diligence findings in valuation models;
• Impact of due diligence findings on projected deal returns;
• Collecting information necessary for assessing integration risks.

Reporting Business Valuation Findings

• A structured business valuation report;
• Putting risks in a commercial context;
• Remaining objective and handling the internal politics.

WHO SHOULD ATTEND?

The course is designed for directors and senior managers involved in mergers and acquisitions and requiring a thorough understanding of the approaches used to value companies:

• Managing Directors;
• Business Development and Commercial Directors and Managers;
• Corporate Development and Strategy Directors and Managers;
• Finance Directors and Financial Controllers;
  

RECENT DELEGATES

Delegates from the following major companies have attended recent CDS courses:

• E2v;
• Macmillan Publishing;
• Thomson Reuters;
• Sealed Air;
• First Rate Transaction Services;
• Arcelor Mittal.

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