Corporate Valuation: Not a Closed Book!

Profound knowledge of valuation in general and corporate valuation in particular is relevant and indispensable for the following situations:

investment decisions: through comparison of value and price it helps to avoid value-exceeding purchase prices of assets and companies and therefore increases quality of investment and financing decision. Valuation is part of the investment decision.
acquisition or sale of companies and business units: sufficient valuation competence allows to
- create one’s own valuations
- cross-check and assess valuations prepared by third-parties
- actively and competently participate and lead negotiation talks

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: