Corporate Valuation: Techniques & Applications

The course covers various methodologies used for business valuation, the process of valuation exercise and its importance and implications on strategic decision making. This course will have a mix of practical topics relevant to the current business environment. The course has been designed to build the financial confidence of individuals and enable them to carry out corporate valuation exercises independently as part of their daily responsibilities.

Overview

The Course will provide participants with a structured process and methodology to analyze and understand financial information and help them improve their valuation skills. The course is designed to ensure that complex concepts are delivered to participants in a simple way and make it easier for them to remember and apply these concepts in their current job and business decision-making. 

Who should attend                          

All individuals who want to enhance their expertise in business valuations should attend this course

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• Finance managers, business analysts, bankers, portfolio managers, etc
  
• Functional/ department heads and decision-making professionals
  
• Middle to senior managers from different industries
  
• Financial professionals like CPA, CFA, MBA, etc
  
• Business owners, entrepreneurs, investors, consultants, etc
  
• Any other professional who wants to build up his/her expertise in valuation
  

Methodology                                                

Non- theoretical methodology which includes interactive discussions, case studies, interactive games and assignments to understand the concepts and their applicability.

We request you to please bring your laptop with Microsoft Excel installed to the class.

Trainer

All our trainers are carefully chosen by us and possess a rich and vast experience in the financial sector. This course conducted by an experienced training consultant having more than 17 years of industry experience with some of the world’s leading business institutions, specializing in corporate finance, investment banking, and private equity.

Course Content

Module – 1

Valuation: Introduction to different methods

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• Introduction to business valuations
  
• Various types of valuation methodologies
  
• Analysis of company and identifying appropriate methods to be used for valuation
  
• Approach to Asset Value vs. Equity Value
  
• Key pitfalls
  

Module – 2

Importance of free cash flows

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• Difference between Accounting profit and Cash profit
  
• Approach to forecasting free cash flows
  
• Components and calculation of detailed free cash flows 
  

Module – 3

Cost of Capital: Equity and Debt

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• Components of cost of equity and debt
  
• Measurement of risk-free returns
  
• Risk premium for debt and equity and issues in calculating the same
  
• How to apply beta and its implications
  
• CAPM and its application
  
• How to calculate WACC and its use
  
• Relation between cost of capital & growth 
  

Module – 4

Discounted cash flow approach

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• DCF Concept: various types and their applicability
  
• Understanding of PV, FCFF, FCFE, UFCF, LFCF, Terminal Value
  
• How to run sensitivities for business valuation
  
• Adjustment to normalize free cash flows
  
• Detailed step-by-step approach and calculation
  
• Analysis of  DCF calculation
  
• Sensitising valuation and understanding the impact
  

Module – 5

Valuation: Relative and Multiples based method

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• Process of valuation from comparative multiples - Compilation, adjustments, and rationalization
  
• How  to choose comparable companies and past transactions
  
• Main factors affecting selection - size, geography, regulation, customers
  
• Other factors affecting comparability – free float, capital structure, corporate finance activity
  
• Key adjustments in compilation
  
• How to calculate and apply critical multiples for valuation - Price Earnings multiple, Price to Book multiple, Enterprise value to EBITDA, EV/FCF, FCF/BV, EV/EBITDA, EV/Capex, EV/Subscriber, EV/EBITDAR, EV/Capacity, etc
  
• Key issues and pitfalls
  

Module – 6

Analysis of complex companies and transactions

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• Companies having various assets and business verticals - Sum-of-the-Parts (SOTP) Valuation
  
• Strategic decision-making process (Mergers and Acquisitions, Leveraged Buyouts, etc)- valuation and issues
  
• Application of control or leadership premium, synergies, cash flows, illiquidity and minority discounts, etc
  
• Valuation of start-up ventures and negative cash-generating companies 
  

Module – 7

Return analysis

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• How to do return analysis at the time of investments and exits
  
• Expected return vs. Final return (Equity IRR- Gross and net)
  
• Key adjustments and its implications
  

Module – 8

Key adjustments in the model

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• Focus on flexibility and integrity of financial models
  
• Some essential sheets added to return analysis
  
• Concept of cash multiples
  
• Additional analysis - sensitivity, scenario, variance, etc
  
• Other funding requirements, dilution, returns, etc
  

Module – 9

Detailed practical exercise to do valuation exercise from scratch to build confidence of participants

If you need further information, please visit www.riverstonetraining.com.sg or send mail at [email protected]

Riverstone – Corporate Training https://www.riverstonetraining.com.sg

Event Venue & Nearby Stays

JW Marriott Hotel Kuala Lumpur, 183 Jalan Bukit Bintang, Kuala Lumpur, Malaysia