Leveraging Principles of Business Valuation for Long-term Sustainable Growth
CPD Hours: 2
Price: R450.00
Leveraging Principles of Business Valuation for Long-term Sustainable Growth
Presenters : Bekithemba Ndebele ACCA
Overview
As a trusted business advisor, an accountant must possess a strategic and technical understanding of the principles of business valuations, even if a client's business is not for sale. This knowledge is a critical tool in an accountant's arsenal to provide clients with not just a valuation but also strategic advice, performance benchmarking, and tax planning advice, and long-term growth strategies to maximize the value of their businesses in the long term.
Join Bekithemba Ndebele ACCA as he provides insightful knowledge that you can apply immediately to elevate your service offering.
Learning objectives
Attending this webinar will equip you with the following skills:
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Understand the purpose and importance of business valuation and its relevance in various financial contexts including mergers, acquisitions, and investment analysis.
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Identify the fundamental principles of business valuation, including the concepts of fair market value and investment value.
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Develop an understanding of the three main approaches to business valuation and know when and why each valuation approach is used, highlighting their respective advantages and limitations.
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Be aware of the various factors that can affect the valuation of a business, such as market trends, industry conditions, and economic indicators.
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Acquire practical skill to read and interpret key financial statements used in business valuation, including balance sheets, income statements, and cash flow statements.
Content
The webinar will cover the following topics:
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The Concept of value – Difference between Price and Value.
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The purpose of a business valuation.
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Investing in securities (stocks and bonds).
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Buying or selling a business.
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Raising capital.
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Strategic investments and disinvestments.
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Basic valuation inputs and assumptions.
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Use of historical financial information in business valuations.
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Assessment of business risk and risk profile.
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Comparable companies (peers) and comparable transactions.
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Assumptions about future growth.
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Required rate of return (Discount rate).
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Market-based approaches.
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Public company comparable.
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Precedent transaction comparable.
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Income based approaches.
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Discounted cash flow (DCF) models.
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Earnings capitalisation models.
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Asset-based approaches.
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Book value.
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Liquidation (fire sale value).
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Limitations of business valuation models.
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Subjectivity and assumptions.
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Uncertainty of future performance.
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Variability in views.
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Lack of comparability.
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Not an exact science.
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