Executive Education > Our programs > Seminars > Effective business valuation methods and tools

Effective business valuation methods and tools

Fee

$1,695 + taxes

Length

Two days – 9 a.m. to 5 p.m.

Language

Course given in French

Dates

Offered at HEC Montréal
November 16, 17, 2023

Customized version available

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The purpose of this accounting seminar is to introduce you to key business valuation approaches with emphasis on the discounted cash flow method. This will include a closer look at the multiples methods and accounting valuation, as well as real options valuation.

You will quickly master various electronic tools and vital concepts required to obtain an accurate business valuation. You will also be called upon to use your judgment to ask – and answer – relevant questions as part of the valuation process.

Goals

Learn powerful business valuation methods to be able to:
- Foresee the consequences of a strategic shift on the company’s value.
- Determine the maximum acquisition price or minimum sale price of a company.
- Assess the company’s fair market value.
- Fund a corporate acquisition.
Ascertain how to estimate main valuation parameters.
Recognize the benefits and limitations of each method.

Is this for you?

Accounting and finance professionals, managers and executives (otherwise, we suggest you take Financial Literacy for Non-Financial Managers beforehand)

This program is for you if:

You are called upon to take part in the business valuation process.

Special features

Topics of discussion will be determined based on needs voiced by participants.

Testimonials

Instructor:

Julien Le Maux
PhD, MSc (Finance), CFE, C.Adm.
Professor, HEC Montréal

Program

Introduction to business valuation methods

Valuation parameters and available data
Caveats

Discounted cash flow method

Estimation of cash flow based on financial statements
Free cash flow to firm vs. free cash flow to equity
Choice of forecast horizon
Growth and risk assessment
Calculation of discount rate
Continuity value
Surplus assets

Multiples methods

Price-to-earnings (P/E) ratio, price-to-book (P/B) ratio, price-to-sales (P/S) ratio
Sources of information and choice of comparables
Factors that influence multiples

Accounting valuation

Tools for calculating adjusted book value
Tips for valuating brands and other intangible assets
Goodwill in the valuation process

Choice of methods and adjustment in line with specific circumstances
Depending on participants’ individual needs, several themes can also be addressed, including:

Publicly traded vs. privately held business: Liquidity premium vs. control premium
Venture capital investment: Limited horizon
Natural resources and high-tech sectors, where a third method may be useful, namely real options valuation

Training approach

Real-life case studies
Examples
Computer usage

Accreditation

Participants in all of our seminars will receive a certificate of completion from Executive Education HEC Montréal.

Additional information

Laptop computers will be available for use by seminar participants.
Participants will be given a set of Excel files to illustrate the featured concepts and methods.