Corporate Valuation: Not a Closed Book!
Profound knowledge of valuation in general and corporate valuation in particular is relevant and indispensable for both relationship managers as well as risk manager, since
- it increases advisory quality and therefore cross-sell successes
- helps to avoid value-exceeding purchase prices of assets and companies
- and therefore increases quality of investment and financing decision
- change of ownership of companies increases in number and frequency, which requires an assessment of valuations by external parties
- corporate transactions and its financing mean significant revenue potential
Key content:
- Overview of market established valuation methods for valuation of assets, investments, real estate and companies with focus on:
- discounted cash flows (DCF)
- accurate computation of free cash flows
- weighted average cost of capital (WACC)
- terminal value
- critical comparison of different valuation methods:
- net book value
- liquidation value
- replacement value
- market value multiples:
- EBIT-multiple
- EBITDA-multiple
- price-earning-ratio
- market-/book-ratio
- discounted cash flows
- market value added
- economic profit (definition, computation, application)
- application of content through valuation of real life examples (a comparison with real valuation results of actual corporate valuations increases the participant’s confidence in own valuation capabilities.)
- alternatives of transfer of ownership of companies:
- leveraged share buy-back
- LBO/MBO
- leveraged recapitalization
Objectives:
- profound valuation knowledge
- avoiding of value-exceeding purchase prices of investments / acquisitions
- more competent assessment of valuations prepared by third parties
- more competent advisor
- realization of attractive revenue potentials