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

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

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

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

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

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

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

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

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

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 info@riverstonetraining.com.sg

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

Corporate Valuation: Techniques & Applications