Advanced Corporate Valuation Workshop

Agenda Program
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Prague, NH Hotel Prague
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A two-day workshop to review different methods of corporate valuation and introduce advanced techniques.

Corporate Valuation Framework
Forecast Statements, Discount Rates and Terminal Values
Initial Valuation and DCF Models
Peer Group Comparative Valuation
Alternative Valuation Techniques
Real Options and Option-Based Valuation
Case Studies, Excel Models and Exercises
The workshop begins with a discussion and brief description of the main techniques used by banks and corporate finance houses to value start-ups, technology companies, mergers, acquisitions and buyouts.

The workshop then introduces a comprehensive case study to be developed over the two days. The initial sessions review the historic performance and examine the strategies used by the company's divisions and geographic subsidiaries to provide substance and specimen data for financial forecasts.

The attendees work through the historic analysis and forecasts individually or in small groups to develop forecast financial statements, cash flow and ratios. Problems such as operating leases, tax, inflation and research and development are included. The workshop then moves on to discuss the mechanics of calculating discount rates, terminal values and free cash flow valuation.

There are many methods of valuing companies and the workshop includes methods to apply sensitivity to the initial valuation and comparisons with accounting and market values. Furthermore it includes alternative approaches such as adjusted present value, economic profit and real options to provide more comprehensive information.

The workshop is practical in nature and uses case studies, Excel models and exercises to outline and develop the techniques and methods.

To get the most out of the workshop, attendees are required to bring a laptop running Windows and Excel 2010+ with Analysis Toolpak and Solver installed. Attendees will use models and calculators to perform the calculations and analysis.

At the end of the workshop, attendees will possess a working knowledge of the different valuation techniques together with how to apply them in their own environment.
The course will be highly practical and hands-on. Participants are required to bring a notebook with MS Excel. Participants will use models and exercises to outline and develop the techniques and methods.
Microsoft®, Excel® and Windows® are registered trade marks of MICROSOFT Corporation.

Program of the seminar: Advanced Corporate Valuation Workshop

The seminar timetable follows Central European Time (CET).

09.00 - 09.15 Welcome and Introduction

Module 1: Explanation of Valuation Framework

  • Different models and methods
  • Distinction between cash and accounting models
  • Accounting value and adjusted accounting value approaches
  • Description of dividend discount models
  • Cash based approach using discounted cash flow, adjusted present value, economic profit, options approach

Module 2: Workshop Case Study

  • Case study outline and background
  • Initial accounting data from annual reports
  • Historic analysis of the data
  • Management strategy evaluation
  • Problem areas - leases, tax rates, research and development

12.00 - 13.00 Lunch

Module 3: Forecast Statements

  • Reviewing forecast statements
  • Checking inputs and outputs
  • Deriving cash flow
  • Cash flow available for debt service (CFADS) and free cash (FCF)

Module 4: Discount Rates and Terminal Value

  • Financial mathematics refresher
  • Terminal methods and alternatives
  • Capital asset pricing model - criticisms and alternatives
  • Betas and asset betas
  • Peer group and industry betas
  • Cost of capital calculations
  • Time varying WACC
  • Handling inflation
  • Deriving a final cost of capital

09.00 - 09.15 Recap of Day One

Module 5: Initial Valuation

  • Two and three stage DCF models
  • Explanation of fade factors
  • NPV/IRR refresher
  • Initial valuation
  • Comparison to current prices
  • Sensitivity and stress testing

Module 6: Comparison to Peer Group Values

  • Deciding on peer groups
  • Comparative ratios
  • Multiples and their variants
  • Cash flow ratios
  • Developing a valuation
  • Comparison of accounting, dividend and cash flow values

12.00 - 13.00 Lunch

Module 7: Alternative Tools

  • Adjusted present value (APV) methodology
  • Advantages over traditional free cash (FCF) models
  • Worked example of an APV valuation
  • Alternative economic profit method
  • Calculation of net operating profit after tax (NOPAT) and economic capital
  • Typical accounting adjustments
  • Worked example reconciled to free cash flow values

Module 8: Real Options

  • Review of options theory
  • Binomial and Black Scholes models
  • Application of the real options method to technology, biotech and other industries
  • Issues using real options models
  • Worked real options example

Evaluation and Termination of the Seminar

Training catalogue in PDF
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