In this 3 day course you will learn:
- How to analyze financial statements
- The valuation process from A to Z
- Main valuation approaches and methods
- Factors that affect a valuation conclusion
- Advanced valuation techniques and how to use them
- How to manage a valuation engagement
Day One
Principles of Business Valuation
Overview
- Business valuation industry
- The essence of value
- Main drivers and inputs
- Regulatory bodies
- Standards of value
Purposes
- Regulatory
- Transactions
- Tax Litigation
The valuation process
- Steps
- Documents
- Resources
Analyzing financial statements
- Normalization adjustments
- Types of analyses
Estimating future earnings
- Defining Cash Flows
- Cash flows to equity
- Cash flows to invested capital
Discount & capitalization rates
- Capitalization vs discounting
- Weighted average cost of capital
- Calculating cost of equity
- Determining cost of debt
- Market multiples
Role of valuation analyst
- Valuator vs. advocate
- Expert vs. consultant
Valuation Approaches
Overview
Asset based approach
- Adjusted net assets
- Liquidation value
Income approach
- Main elements
- Single-period model
- Multi-period model
- Forecasting cash flows
- Developing the discount rate
- Determining terminal value
Market approach
- Guideline companies
- Comparable transactions
- Strengths & weaknesses
- Main driver of multiples
- Comparability analysis
- Adjusting multiples
Reconciling valuation results
- Important considerations
- Presenting results
Discounts & Premiums
Overview
- Common types of discounts and premiums
- Underlying fundamentals
- Levels of value
Control premiums & minority discounts
- Prerogatives of control
- Quantifying control premiums
- Adjusting control premiums
- Calculating minority discounts
Lack of marketability discount
- The concept of marketability
- Restricted stock studies
- Pre-IPO studies
Benchmark analysis
Other Discounts
- Portfolio discounts
- Restrictive agreements
- Key person discounts
- Blockage discounts
- Other discounts
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Case Study: Medtech, Inc. valuation using the Income Approach |
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Case Study: Medtech, Inc. valuation using the Market Approach |
Advanced Valuation Techniques
Valuation of early stage companies
- Nature of technology investments
- The VC method
- Analyzing forecast risk
- Multi-stage DCF analysis
Real options
- When to use them
- Common types
- The binomial model
Monte Carlo simulation
- Designing robust models
- Probability distributions
- Interpreting the output
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Case Study: Cool Apparel, Inc. - Monte Carlo simulation |
Valuing intangible assets
- Categories
- Valuation methods
Valuing synergies
- Types of synergy
- Key inputs
- Methodology
Valuation Engagement
The engagement letter
Best practices
- Key elements
- Sample letters
Managing information flow
- Information requests
- Interview questions
- Due diligence
The valuation report
- Types of reports
- Initial draft
- Quality controls
- Report delivery
Evaluating a valuation report
- Assumptions review
- Testing results
- Sanity checks
- Compliance checklists
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Case Study: ABC, Inc. - analyzing a valuation report evaluation |
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Enrique Brito
The training program is lead by Enrique Brito, a Senior Managing Director at The McLean Group, a middle market investment bank headquartered in Washington DC. Mr. Brito has more than 20 years’ corporate finance and investment banking experience and has been involved in transactions in the US, Mexico, Venezuela, Colombia, Argentina and Peru. He also has 10 years of experience as a national instructor in the United States in mergers & acquisition, business valuation and negotiation. He is a regular contributor to business publications and a speaker at national conferences on M&A topics.
Mr. Brito holds an MBA, with honors, from The American University and a BS degree in Industrial and Systems Engineering from the University of Florida. He also holds professional credentials as a Chartered Financial Analyst (CFA), Accredited Valuation Analyst (AVA), Certified Merger & Acquisition Professional (CMAP) and Certified Mergers & Acquisitions Advisor (CM&A). Mr. Brito is a member of the CFA Institute, the Washington Society of Investment Analysts, the National Association of Certified Valuation Analysts and the Middle Market Investment Banking Association. He is a Financial Industry Regulatory Authority (FINRA) registered representative (Series 7, 63), investment banking representative (Series 79) and general securities principal (Series 24).
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
20-22 Jun 2012 (Miami, United States)
17-19 Dec 2012 (Miami, United States)
20-22 Nov 2013 (Miami, United States)
The course begins by concentrating on spreadsheet best practice, auditing and the advanced use of Excel. These skills are then applied to the construction of financial, valuation and investment models. Delegates learn how to incorporate forecasting, optimization, risk assessment and sensitivity scenarios into these models. The course is taught using a step-by-step approach to enable delegates to construct financial models for a wide range of practical scenarios.
29 Oct 2012 - 1 Nov 2012 (New York, United States)
For purposes of this course, each of the four days is divided into two modules, resulting in a total of eight modules for the entire course. The outline presents teaching objectives, lectures and case work in each of the different modules.
17-19 Oct 2012 (New York, United States)
The aim of this course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures.
17-19 Sep 2012 (New York, United States)
The aim of this course is to provide participants who already have some transaction experience with further exposure to M&A, company valuation and deal structuring and financing. You will also be introduced to international practice in executing mergers and acquisitions, including an appreciation of today's market practices and procedures including due diligence, accounting issues and valuation techniques.
10-12 Dec 2012 (New York, United States)
Advanced Corporate Finance Techniques explores the broad realm of complex financing tools available to corporate issuers. You will develop strategies used to create value-adding debt financing transactions, considering many of the latest debt financing alternatives available today.
10-13 Sep 2012 (Mexico City, Mexico)
Este programa de entrenamiento ha sido desarrollado por banqueros de inversión con más de 20 años de experiencia práctica en el mercado medio. El curso desarrolla y compara metódicamente ambos puntos de vista en la transacción con el fin de proveer a los participantes de una visión completa de los factores críticos en la operación de fusiones y adquisiciones en el ámbito real de transacciones de negocios. A lo largo del programa, los conceptos principales son enfatizados con el uso de ejemplos y casos de estudio con el propósito de analizar y mostrar la aplicación práctica de dichos conceptos.
5-7 Nov 2012 (New York, United States)
This three-day course has been designed to provide participants with an overview of the private equity industry and the investment process throughout the different stages of a company’s growth. It explains the investment process, objectives, financial instruments and negotiation options from the point of view of both the investor as well as the business owner.
22-24 Aug 2012 (Miami, United States)
With the financial world currently undergoing significant changes, one of the most important challenges in banking is to reinforce the syndicated loan function and to refresh techniques given the evolution of the syndicated loan market. This course enables you to ensure that your staff – whether bankers, lawyers or investment professionals – have the tools to cope with the new environment.
12-14 Jun 2013 (Port of Spain, Trinidad and Tobago)
The course begins by concentrating on spreadsheet best practice, auditing and the advanced use of Excel. These skills are then applied to the construction of financial, valuation and investment models. Delegates learn how to incorporate forecasting, optimization, risk assessment and sensitivity scenarios into these models. The course is taught using a step-by-step approach to enable delegates to construct financial models for a wide range of practical scenarios.
This course has now expired please email us to find out when the course will next be running.