This seminar is designed for CPAs, attorneys, presidents and vice presidents, business owners and managers, CFOs, tax managers and financial planners.
Business valuation is an integral factor in making financial decisions such as buying or selling a business, establishing a price between shareholders, or transferring wealth. Value is never concrete or constant: it is a complex estimate. Therefore, business valuations must be thorough, complete, accurate, convincing, and able to withstand third-party scrutiny.
“Understanding Business Valuations: Just the Basics” is a practical how to seminar that presents the crucial issues in valuation. There are numerous reasons for performing a business valuation. The program covers a variety of applications for valuation and how they affect the standard of value in the assignment.
Topics to be discussed include:
• Why Valuation Is Important
• Definitions Of Acceptable Valuation Methodologies
• Comparative Valuation Techniques
• Premiums And Discounts
• The Internal Revenue Service
• Building Value
8:30 a.m. - 9:00 a.m.
I. Why Valuation Is Important
A. Tax-Related Issues
B. Transaction-Related Issues
C. Litigation-Related Issues
9:00 a.m. - 9:30 a.m.
II. General Valuation Considerations
A. Engagement Letter
B. Purposes Of The Valuation
C. Standards Of Value
9:30 a.m. - 10:00 a.m.
III. Definitions Of Acceptable Valuation
A. Revenue Ruling 59-60
1. Fully Distributed Valuation Of Comparable Companies
2. Change Of Control Transactions
3. Discounted Cash Flow Analysis
4. Break-Up Valuation Of Company Assets
10:00 a.m. - 10:30 a.m.
IV. Comparative Valuation Approaches
A. Earnings Multiples
B. EBIT Multiples
C. Cash Flow Multiples
D. Revenue Multiples
E. Book Multiples
10:30 a.m. - 10:40 a.m.
10:40 a.m. - 10:55 a.m.
V. Premiums And Discounts
A. When Are Premiums And Discounts Appropriate
B. Market Studies To Determine Size Of Premiums And Discounts
10:55 a.m. - 11:10 a.m.
VI. Developing And Reconciling Value
A. More Than One Approach May Be Acceptable
B. Reconciling Multiple Approaches
11:10 a.m. - 11:40 a.m.
VII. The Internal Revenue Service
A. How Aggressive Should You Be
B. What “Red Flags” Does The IRS Look For And Recent Tax Court Decisions
C. How To Deal With The IRS If You Are Audited
D. FLPs And Other Tax Topics
11:40 a.m. - 12:10 p.m.
VIII. The Current Status Of The M & A
Marketplace And How It Affects
A. Different Types Of Buyers And What They Will Pay
B. Size Premiums And Discounts
C. The Credit Markets And How They Effect Value
12:10 p.m. - 1:10 p.m.
Lunch (On Your Own)
1:10 p.m. - 1:40 p.m.
IX. Impact Of Transaction Structure On
A. Asset Sale
B. Stock Sale
C. Subchapter S Corps
1. 338(h)10 Elections
D. LLCs, etc.
E. Troubled Companies
1:40 p.m. - 2:25 p.m.
X. Building Value
A. Acquisition Criteria
B. Performance Benchmarks
C. Valuation Hot Buttons
D. Managing Value In Tough Times
2:25 p.m. - 2:35 p.m.
2:35 p.m. - 4:30 p.m.
XI. Pulling It All Together: Hot Topics
And Question/Answer Session
A. M & A Due Diligence Issues
B. Small Company Valuation Issues
C. Large Company Valuation Issues
D. SFAS 141/142 Implementation Issues
E. Sarbanes – Oxley Act
F. Questions And Answers Session