Business Valuations - Fundamentals (VO)
Learn about and apply various valuation tools such as the capitalized cash flow (CCF) approach and the discounted cash flow (DCF) approach to business case studies. The seminar also focuses on business valuation interpretation and the mechanics of the valuation process under an asset approach, income approach, and market approach.
Watch a qualified CPA instructor teaching the course and access a copy of the same course material that is provided to attendees of an in-person session.
After registering for a Video on Demand course, CPA Saskatchewan will send you information on how to access the course within 2 business days.
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Accountants often need basic business valuation knowledge and skills to assist their clients or employers. The seminar provides participants with practical insight into business valuation. Participants will learn about and apply various valuation tools such as the capitalized cash flow (CCF) approach and the discounted cash flow (DCF) approach to business case studies. The seminar also focuses on business valuation interpretation and the mechanics of the valuation process under an asset approach, income approach, and market approach.
The course will provide participants with the basic tools for approaching a business valuation. Whether they are assessing the reasonability of a transaction (e.g., a market transaction or a tax-initiated process) or providing advice on a potential transaction, this course will provide candidates with the basic knowledge of what to look for, and where to be cautious. It will also provide candidates with a means of triangulating valuation conclusions to cross-check preliminary findings. The course utilizes a detailed case study that builds upon itself for each module that allows for practical application.
WHO WILL BENEFIT:
While this seminar may be useful for any finance professional, the course targets the following professionals:
- Professionals in industry and practitioners with minimal business valuation experience
- Executives, such as Controllers, CFOs, and Finance Directors, who seek an understanding of business valuations either for financial/tax reporting or for mergers and acquisitions
- Public practice professionals working in audit or tax and looking to increase or refresh their specialized knowledge set
By the end of this course, participants should be able to:
- assess when to value the assets of a company individually versus when to value an enterprise as a whole,
- create a bridge between enterprise value and equity value, including the impacts of redundant assets and debt-like items, as part of a valuation exercise,
- calculate the cost of capital for a company, including the cost of equity, cost of debt and weighted average cost of capital, when formulating discount rates,
- ascertain relevance between a subject company to value, comparable public companies and precedent transactions when triangulating value in a secondary approach, and
- utilize the basics concepts of specific valuation standards in a mock valuation engagement.
- Overview and application of valuation methodologies, including income approaches, market approaches, and asset approaches
- CCF and DCF valuation techniques and their application
- The calculation of maintainable earnings
- The determination of capitalization and discount rates
- A comparison of enterprise value and equity value
- Market valuation approaches using equity value and enterprise value multiples