COURSE OVERVIEW:
A business valuation is a general process of determining the economic value of a whole business or company unit. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, establishing partner ownership, taxation, and even divorce proceedings.
The topic of business valuation is frequently discussed in corporate finance. Business valuation is typically conducted when a company is looking to sell all or a portion of its operations or looking to merge with or acquire another company. The valuation of a business is the process of determining the current worth of a business, using objective measures, and evaluating all aspects of the business.
A business valuation might include an analysis of the company's management, its capital structure, its future earnings prospects and the market value of its assets. The tools used for valuation can vary among evaluators, businesses, and industries. Common approaches to business valuation include a review of financial statements, discounting cash flow models and similar company comparisons.
No two businesses are exactly alike — even those that are part of a national chain with exactly the same sign on every door. Each business or outlet of a business has its own complexities that determine whether it’s worth a little . . . or a lot.
Valuation should be the first thing you think about before you make a move into or out of any business. Estimating the fair value of a business is an art and a science; there are several formal models that can be used, but choosing the right one and then the appropriate inputs can be somewhat subjective.
The first part of this course starts by explaining what business valuation is and the reasons valuation happens in a business. Then discusses the importance of planning in valuation. Then examines what triggers a business valuation including how to get a valuation to appeal to lenders and investors and how to set up an exit plan.
The second part begins by discussing the tangibles and intangibles of business valuation including the standards of value and how they’re used. Then explores the basic accounting approaches that experts take to uncover value and how risk plays a role in valuation. Finally, explains the challenges of valuation in a knowledge economy including the idea-based valuation, the ways to determine intangible value and how to safeguard intangible value for the future.
LEARNING OUTCOMES:
By the end of this course, you will be able to understand:
· The value of understanding business valuation
· The importance of valuation for businesspeople
· How value differs from price?
· Why no two valuations are exactly alike?
· Why valuation isn’t a one-time deal?
· The basic building blocks for calculating value
· The three major approaches to business valuation
· How rule of thumb enters into business valuation?
· The intangible asset valuation
· What triggers a business valuation?
· The common reasons for wanting a business
· How lenders make thorough valuation a necessity? And what they want to see?
· How to prepare for mergers and other big-money deals?
· How to seek new or continued funding for an existing business?
· What to do if you want — or need — to sell a business?
· How to do some smart estate planning?
· How to face threats from market forces?
· The benefits from an exit plan and when should an exit valuation be done?
· The tangibles and intangibles of business valuation
· The reasons for valuing a business
· The standards of value
· The fair market value
· The perceptions of investment value
· The fundamentals of intrinsic value
· The liquidation value
· How to adjust or normalise a financial statement?
· The common reasons for adjustments of figures in the valuation process
· How to fold in tangible assets?
· How to draw valuation conclusions with intangible assets?
· The basic theories of the valuation process
· The step-by-step overview of the valuation process
· The different approaches to business valuation including; the asset approach, the market approach and the income approach
· How to calculate risk and its relationship to present value?
· The capitalisation of future maintainable earnings method
· The discounted cash flow (DCF) method
· The weighted average cost of capital
· The excess earnings method
· The challenge of valuation in a knowledge economy
· How to move from a hard-asset to an intangible-asset economy?
· How to determine the value of a company based on ideas?
· The importance of real, documented income
· What strategic buyers and lenders want to see?
· How to reach intangible value?
· Brand valuation approaches including; cost approach, market approach and income approach
· Why it’s important to value intangibles in a downturn?
· Why recognise customers as valuation drivers?
· Why preserve your knowledge business for the future?
· What owners need to do for planning ahead?
COURSE DURATION:
The typical duration of this course is approximately 2-3 hours to complete. Your enrolment is Valid for 12 Months. Start anytime and study at your own pace.
COURSE REQUIREMENTS:
You must have access to a computer or any mobile device with Adobe Acrobat Reader (free PDF Viewer) installed, to complete this course.
COURSE DELIVERY:
Purchase and download course content.
ASSESSMENT:
A simple 10-question true or false quiz with Unlimited Submission Attempts.
CERTIFICATION:
Upon course completion, you will receive a customised digital “Certificate of Completion”.