Business Valuation

Facilitators: 
Mihai Căruntu – Presenter / Trainer, Senior Analyst Corporate Finance Division, BRD – GSG, member of AAFBR 
Carmen Lipara, PhD - Presenter / Trainer/Consultant, Manager Valuation, Modeling and Economics, EY, member of AAFBR
Daniela Ropotă, CIIA – Presenter / Trainer/Consultant, Senior Associate Valuation, Modeling and Economics, PwC, President of AAFBR 
Mihai Stan, FCCA - Presenter / Trainer, Expert Banking Resolution Dept., NBR, member of AAFBR

The course focuses on two critical concepts of the economic life: business and value. As practitioners interested in economy and more specifically in finance, lecturers understand that knowing what a business is worth is a pre-requisite for decision making in finding on the appropriate price in a transaction and in making management and financing choices when running a business. 

The participants will find out what drives the intrinsic value of a business and how this can be estimated using traditional models apparently easy to apply, but to the same extent, whose results seem easy to be challenged. The facilitators will present well-known business valuation methods using spreadsheets tools, pitfalls of financial statements forecast process, and assessment of risk to under-achieve or over-achieve the forecasts. Business valuation results will be of interest for their owners, investors (even if they aren’t listed) or creditors.  

 Learning Outcomes

Gain knowledge and master the main valuation techniques.

How the key judgments to market multiple valuation is to identify most appropriate comparables and to explore the differences between their business profiles .

How to build Discounted Cash-Flow Model using inputs such as Weight Average Cost of Capital (WACC), Net Working Capital (NWC), Capital Investments (CAPEX), Net debt and TerminalValue.

How to make key judgments for a convincing business assessment.

Understand the role of business plan for a valuation exercise.

CONTENT

Comparable company valuation (Comparable Company Trading Multiple Analysis and Comparable Transaction Multiple Analysis): range of multiple used in valuation, applicability of multiples and limitations, identifying the most appropriate multiples to evaluate the target company, reasons to consider discounts/premiums in applying the market multiple approach.

Business plan – Plan to write, plan for research, plan the package and build your numbers

Understanding the discount rate concept and calculating each of the components of the Weighted Average Cost of Capital (WACC): Risk Free Rate, Country risk premium, Cost of equity. 

Cost of debt

Understanding the net working capital concept and its impact over the valuation of the company

Discounted Cash Flow Model: practical approach of building the model

Sensitivity analysis to the development of some key business variables, relevant especially in times of great uncertainty such us the COVID-19 pandemic

How to reconcile results between different valuation tools in order to reach the concluded value of the target company

Learning Activities
During the course the concepts introduced will be practiced through a case study. The course will also include step-by-step technical hints on valuation process. Participants will present their work virtually to their colleagues on the course for further feedback and discussion.

Prerequisite
A basic financial background is required.

Target Audience: Financial analysts, asset managers, private equity managers, high level professionals working in other areas of finance and accounting, top managers and board members, anyone in a managerial position who needs a thorough familiarization to business valuation.

Number Of Participants: limited to maximum 12

The webinars will be highly interactive, based on discussions and case studies

When:                                                            Registration:
June 15 - 16,2022 (2 pm – 6,15 pm)                 by June 6, 2022
December 5 – 6, 2022 (2 pm – 6,15 pm)           by November 25, 2022

Duration: 8 hours (net)                         

The course is guaranteed by the Association of Financial-Banking Analysts from Romania.

The webinar will be delivered using Online Platform, allowing the virtual participation, both from home and from work, with no risks associated, using just a browser. After the registration to the course, one day before the online sessions took place, the participants will receive a link to access the virtual classroom.

A digital certificate will be issued by Envisia and AAFBR after the course.