Company Valuation
Applying a Rigorous, Step-by-Step Valuation Approach
Duration : 5 days
Contrary to a common misconception perpetuated by mainstream media, company valuation does not involve applying various "methods" in a somewhat alchemical mix to arrive at a haphazard "range." It is, in fact, a professional practice grounded in a series of precise operations modeled after those implemented by real market actors. This training aims to present the different phases of this methodology so that participants can replicate it or simply ensure that the "experts" they consult have applied it correctly. It applies to all companies except "micro-enterprises" and "start-ups," which have specific issues.
Learning Objectives
Follow the methodology of valuation
Transition from a "resource-oriented" to a "market-oriented" perspective
Apply the international standard of income-based valuation
Training Program
Follow the Valuation Methodology
Gather the "model-data-parameters" triptych
Reference to market operations is essential
From the accounting balance sheet to the valuation balance sheet in "fair value"
From economic value to equity value
Why value is an estimation of price and not the reverse
Steps in the valuation process
Practical case: Follow the succession of valuation phases on a simplified case
Implement the "Valuation Diagnosis"
Diagnosis as justification
What to evaluate, when, for whom, and for what purpose?
Considering the context and specific characteristics of the target
Collecting, verifying, and coherently organizing information
The three diagnoses: strategic, financial, external
Continuous practical case: Identify and quantify everything that impacts value
Transition from a "Resource-Oriented" to a "Market-Oriented" Perspective
Apply the asset-based approach: an obligatory phase and not a "method"
Why revalue assets and liabilities
Techniques for estimating the real value of assets
Differential treatment of operating and non-operating assets
Calculation methods for "revalued net assets," adjustments
Continuous practical case: Determine a company's revalued net assets
Adopt a Market Perspective: The Indispensable Use of "Comparables"
Principles and limitations of the comparative method
"Multiples" of revenue and other data
The Price to Earnings Ratio (PER) and its usage
Researching and adapting "references"
Continuous practical case: Apply the comparative method
Apply the International Standard of Income-Based Valuation
Determine when, why, and how to calculate a value based on income
From financial theory to the international valuation standard
Actuarial models and the "DCF" (discounted cash flows) model
Estimating cash flows and residual value
Determining the discount rate
Verifying the existence of goodwill and measuring it
Continuous practical case: Determine the cost of capital and perform the "profitability test"
Correct and Extrapolate "Free Cash Flows" to Deduce Value
How to extrapolate past results
Possible adjustments
The business plan and justification of assumptions
Variants, scenarios, and sensitivity analyses
Valuation of economic value using "free cash flows"
Continuous practical case: Estimate economic value and deduce equity value
Synthesis Practical Case: Critique a Valuation Done by Others
Specifics of SMEs and business assets are covered in "Company and Business Asset Valuation in SMEs or Micro-Enterprises" training, and start-up specifics in "Start-Up Valuation" training.
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Key Points
The training is based on case studies from which the steps, phases, diagnosis, assumptions, and calculations of a valuation are performed.
Participants will use a presentation and calculation model ("template") in Excel during the training and will have access to it afterward.
Who Should Attend This Training
Accounting Managers
Administrative and Financial Managers
Financial Controllers
Business Leaders
Chartered Accountants
Lawyers
Tax Specialists
Consolidators
Prerequisities
Good knowledge of accounting and corporate finance or have completed the following training:
Finance for Non-Financiers - Level 2
Corporate Finance: Key Analysis Tools
Teaching Methods
Structured training around skills transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous sessions
Multi-phase learning path to allow engagement, learning, and transfer
Training that promotes participant engagement for better retention of teachings
Satisfaction and Evaluation
Skills evaluation will be conducted throughout the training by the participant (self-assessment) and/or the trainer according to the training modalities.
Online training evaluation in your participant area:
Immediately after the training, to measure your satisfaction and your perception of your skills evolution compared to the training objectives. With your agreement, your overall score and comments will be published on our site through Avis Vérifiés, a NF Service Certified solution.
After 60 days, to validate the transfer of your acquired skills in a work situation.
Attendance tracking and issuance of an individual training certificate or a certificate of completion.
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PARIS
38 Rue Boulard, 75014, Paris