Business valuation

Compétences acquises :

Master the main valuation methods.

Know how to choose the most appropriate method(s) according to the context of the valuation.

Reconcile the results of a multi-criteria approach.

Know how to use publicly available tools.

Présentation générale :

Valuation requirements may arise from accounting obligations (PPA, impairment tests, etc.), tax obligations (transfer pricing, intra-group restructuring, management packages, etc.) or transactional obligations (mergers & acquisitions, business transfers, single asset transactions, etc.). The aim of this course is to present the main valuation methodologies generally used and to master their implementation in different contexts.

Programme :

Sequence 1 : Introduction

The speaker will present the program, identify participants’ expectations, encourage active listening and manage the administrative aspects.

Discussions between participants. 

Sequence 2 :  Overview of the main valuation methodologies

• The aim of this part is to assess participants’ knowledge of these subjects, to identify known/unknown methods and to lead the rest of the training according to the needs and valuation contexts generally encountered.
• Powerpoint presentation.
• Feedback from participants.

Sequence 3 : Discounted cash flows method (DCF) – Step 1

• How to analyze a business plan for evaluation purposes?
• Powerpoint presentation.
• Examples, feedback. 
• Presentation and use of public databases and useful websites.

Sequence 4 : Discounted cash flows method (DCF) – Step 2

• How to determine a normative cash flow and calculate a Free Cash Flow?
• Implementation through a case study (based on a real case) which serves as a common thread throughout the course: excel support provided, individual and group work, correction during the session and discussion.

Sequence 5 : Discounted cash flows method (DCF) – Step 3

• For this crucial step in the implementation of the method, often difficult to grasp, the speaker suggests specific approaches for each participant, depending on their interest and experience in this matter, their access to certain databases and their current and future needs.
• Quizzes to check understanding of underlying concepts.
• Presentation and use of public databases and useful websites.
• Application to case study and correction during the session.

Sequence 6 : Discounted cash flows method (DCF) – Step 4

• Analysis of results and identification of advantages/disadvantages of the method (in general and applied to the case study / feedback).
• Application to case study and correction in session.
• Discussions between participants.

Sequence 7 : Introduction

• Feedback day 1 and program day 2.
• Discussions between participants.

Sequence 8 : Comparable companies and comparable transactions methodologies – Step 1

• Analysis of relevant aggregates: theory and practice.
• Application to case study.
• Discussions on other real cases / experiences of the participants.

Sequence 9 : Comparable companies and comparable transactions methodologies – Step 2

• Analysis of market data and selection of comparable companies. This stage is often the occasion for a wide-ranging discussion of the “myths” surrounding the application of the method, its real-life application and the difficulties involved in implementing it, despite its apparent ease of use.
• Presentation and use of public databases and useful websites.
• Application to case study.
• Discussions on other real cases / experiences of the participants. 

Sequence 10 : Comparable companies and comparable transactions methodologies – Step 3

• Analysis of results and identification of advantages/disadvantages of the method (in general and applied to the case study / feedback).
• Application to case study and correction in session.
• Discussions between participants.

Sequence 11 : Other valuation methodologies (notably based on net asset)

• Depending on the needs and industries of the participants, this phase is adapted to each training course. Topics covered may include net asset value methods, or methods more specifically related to intangible assets.
• Experience feedback.
• Discussions between participants.

Sequence 12 : Rationalizing results – Step 1

• Why use a multi-criteria approach? How can different results be reconciled? How should methods be ranked?
• Individual or group thinking on the “best” approach.
• Comparison of results between participants. 

Sequence 13 : Rationalizing results – Step 2

• Using sensitivity analyses: identifying the relevant criteria on which to base this analysis, Excel modelling of these analyses.
• Using Excel and data selection criteria to “rotate” tables.
• Application to case study.

Sequence 14 : Rationalizing results – Step 3

• Using market references: comparing results with available market data, using public databases.
• Discussions between participants. 
• Experience feedback. 

Sequence 15 : From value to price

• Understand the difference between the value derived from an independent valuation and the price finally paid in a transaction: synergies, timing, competition, etc.
• Discussions between participants.
• Experience feedback. 

Sequence 16 : Using scenarii

• To take into account uncertainty, trends, opinions, potential synergies, etc.
• Presentation on Excel of simple, practical ways to perform these analyses.
• Experience feedback. 

Phase 17 : Conclusion

On-the-spot debriefing of the training session, perspectives on the use of new concepts seen during training, discussions.

Offre de formation :

This training can be part of an in-company training program or a training course.