Key Benefits
- Apply advanced valuation methods to assess complex transactions more effectively
- Refine modelling assumptions and value drivers to strengthen analytical credibility
- Refine your valuation judgement through the use of practical case studies
Technical Content
Part One Advanced Discounted Cash Flow Valuation
Advanced Business Valuations begins by recognising the difference between price and valuation
Applications – modelling Capex flows and working capital movements: Understanding the linkage between reinvestment rate, growth and risk
Fade rates on long-term cash flows
Problems calculating terminal value and long-term growth rates:
alternatives to the classic terminal value perpetuity
Estimating asset life
Evaluating the stable growth period
Handling research expenditure problems and operating lease payments:
Should we treat R&D as long-term CAPEX?
Capitalising lease payments
Effective and actual tax rates
The concept of normalised earnings flows to avoid abnormal cash flow patterns
Using multi-period terminal value models
Weighted Average Cost of Capital (WACC) and the Discount Rate
Advanced valuation includes the review of the capital asset pricing model (CAPM): The drawbacks of using the model
How to derive equity risk premiums in different countries
How betas are derived: regressing company and market returns
A bottom-up method of calculating beta reflecting business mix and leverage:
Deleveraging betas for private company use
Which beta to choose for company valuation?
Problems with CAPM – is it really still a valid concept?
Alternatives to CAPM
Market cost of risky debt
WACC calculation
Optimal capital structure and gearing risk
Is WACC dead, given the capital-raising ability of modern firms?
Case study example of corporate valuation using the DCF technique
Part Two
Analysing an M&A Business Valuation Case Study
Part 2 of this advanced valuation course evaluates an acquisition target's valuation
Use of selected valuation techniques: What synergies are possible?
When should synergy be considered?
Use of control premiums
Comparison of valuation results using DCF and relative price multiples
Understanding the value drivers of the company and potential synergies
Comparing the pre-bid price with the actual price paid
Case study example of an M&A transaction
Using EVA and CFROI - Based Techniques
Correlation to the DCF model
Calculation of NOPAT and capital
Typical adjustments for EVA calculation
Understanding the MICAP (market-implied competitive advantage period) concept
MVA as a discounted EVA concept
Cashflow return on investment (CFROI) – the Holt Approach
Comparison of DCF, EVA and CFROI as valuation methodologies
Real Option Valuation Techniques
Advanced business valuations cover the principle of arbitrage in deriving option-based pricing
Using binomial option models
Simplifying options analysis using the Black-Scholes model: Problems using this model for valuation
Applications of real option business valuation models: technology, patents, oil and gas, biotech, etc.
Problems using real option models
Case study example of using real options in company valuation
Training Objectives
The following objectives are covered throughout this advanced valuation course at Redcliffe Training:
Understanding the importance of differentiating price and value
The ability to select an appropriate valuation methodology to suit the purpose
Create a discounted cash flow model for a corporate entity
Value a corporate entity using a comparative analysis
Confidently discuss the inherent problems within valuation theory with a client
Applying valuation models to different sectors
Valuing start-up companies and early-stage development valuation methods
Increase assurance in discussing valuation models and approaches
Training Course Summary
In today’s environment, valuations are increasingly debated. Uncertainty and volatility in future cash flows widen the gap between buyer and seller expectations.
The valuation challenge is compounded by misconceptions around price versus value, whilst models clarify the difference between what is paid for an asset and the future value it may deliver.
Our advanced valuation course takes business valuation techniques much further than introductory sessions, considering essential contemporary techniques. This includes M&A methods application, understanding EVA, the application of CFROI and the use of real options in business valuation analysis.
Case studies from recent deals are included, as are practical exercises involving problem areas. Advanced Business Valuations include critiques of conventional techniques and consider suitable, deployable alternatives in differing circumstances. Participants are required to have a laptop and will be provided with Excel models for use during training.
Your trainer
Course Trainer · 17 yrs experience
- Valuation Courses
Advanced Business Valuations at Redcliffe Training is delivered by the Managing Director of an international advisory firm specialising in business valuation and development services for the corporate, banking, and finance sectors, which he has owned for 17 years. He combines extensive practical experience with deep expertise in corporate and structured finance across global financial markets.
He is a Visiting Fellow in the M&A department and Programme Director of Executive Development at Sir John Cass Business School, London. He is also a member of the Visiting Faculty at Fuqua Business School.
This specialist has worked as an advisor to the UK’s Overseas Development Administration, alongside EU PHARE and TACIS programmes across Europe and Russia.
His main areas of expertise are corporate finance, M&A, corporate analysis, structured finance, asset securitisation, risk management, advanced valuation, corporate credit processes, project finance and treasury management. He advises global corporate and banking clients in these areas, serving as an Expert Witness for London law firms.
This trainer's extensive list of global clients covers European, Middle East, African and Asian markets. He works extensively with large corporates, private equity firms, private investors, and public sector organisations such as the NHS and major law firms. He delivers business valuation advisory and development services either through relevant departments or directly to senior management.
As a well-known figure of various training and development companies in Europe, he provides regular seminars across the world on his specialist topic areas.
This advanced valuation course leader was previously MD of Union Plc, a London merchant bank and worked with leading global investment banks. He left Union Plc in 1996 to establish his own international advisory company.
The list of financial institutions and corporates this specialist has worked with over recent years is extensive and includes - Allied Irish Bank, Alpha Bank, Bank of America Merrill Lynch, Bank of China, Barclays, Bayern LB, BT plc, Citibank, China Construction Bank, Credit Agricole, Credit Suisse, Danone, DECC, Deloitte, Dexia, Emirates Bank, E&Y, Euler Hermes, First Gulf Bank, FSA London, Garanti Bank, HBOS, Hohhot Bank Mongolia, HSBC, HVB, Iccrea Banca, Intesa SanPaolo, Central Bank of Ireland, KPMG, L’Oreal, Malta FSA, Mongolian Stock Exchange, Morgan Stanley, Mubabdala, NHS and many others.
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