VPS STRAIGHTtalk Series

Wednesday, June 28, 2017, 1-3 pm EDT

Best Practices: Business Valuation Methods
The Discounted Cash Flow Method

***Includes New Detailed Case Study***
***Includes Report Language***
Welcome to our
"Best Practices: Business Valuation Methods Series"

1)  Guideline Company Transactions Method (3/8/17) - Archive available
2)  Capitalized Cash Flow Method (3/29/17) - Archive available
3)  Cost of Capital (4/26/17) - Archive available
4)  Discounted Cash Flow Method (6/28/17) - Purchase now
Coming Soon:
5)  Guideline Public Company Method (7/19/17)
6)  Report Writing (8/16/17)

Note: Each webinar is presented on a standalone basis. While prior attendance is encouraged, it is not required.

If you've missed any of the first 3 webinars in the Best Practices series, you can catch up with our archives.
Purchase 5 webinars in this series (archived or live presentations) -- GET 1 FREE!

Your entire office can attend and earn CPE for just $239.
Our simple pricing plan means you get access to the live webinar for the whole office  as well as an archived copy and handouts for later viewing.

Jim Hitchner, CPA/ABV/CFF, ASA
Managing Director, Financial Valuation Advisors
CEO, Valuation Products and Services
President, The Financial Consulting Group
Coauthor, Hitchner Pratt Fishman, A Consensus View Q&A Guide to Financial Valuations
Coauthor, Discount for Lack of Marketability Guide and Toolkit
Coauthor, Financial Valuation Applications and Models, 4th edition
Coauthor, PPC's Guide to Business Valuations, 27th edition
Former member of the AICPA BV Standards Writing Task Force
Inductee in the AICPA BV Hall of Fame

The discounted cash flow method is a bedrock valuation technique. This session will cover the issues every analyst needs to consider to master this common but complex method.  

Webinar Outline "Best Practices" includes:

  • Level of reliance on a DCF method
  • CCF, DCF, or both?
  • Matching the discount rate to the projected cash flows
  • Proper use of the mid-year convention in the terminal year
  • Normalizing capital expenditures and depreciation
  • Accounting for excess depreciation and amortization
  • Risk analysis and adjustments - discount rate, margins, or growth
  • Normalization adjustments
  • Comparison to historical earnings
  • Minority vs. control cash flows
  • Direct to equity vs. invested capital applications
  • The use and misuse of exit multiples
  • Working capital assumptions - debt-free vs. direct to equity
  • Normalizing debt
  • Supporting a long-term growth rate
  • Perpetuity growth - yes or no?
  • Sensitivity analyses and sanity checks
  • Weighting and reconciling values

Learning Objectives:

Using a detailed case study (including report language), the participant will learn:

  • How to apply best practices in the DCF method
  • How to defend the DCF method
  • How to select the proper level of reliability of the DCF method

Handouts:

  • VPS webinar PowerPoint slides
  • Selected related articles
  • Sample report section
  • Following the webinar, attendees will receive an interactive video of the webinar showing the audio synced to the slide presentation in real time 

 

The VPS StraightTalk webinar series brings you outstanding continuing professional education on business valuation and litigation topics. Unless otherwise noted, all webinars are targeted at an intermediate program level, qualify for two hours of CPE credit, and begin at 1:00 p.m. ET. Pay one fee of $239 for everyone in your firm to participate. Unlimited employees from your firm will each receive 2 CPE credits for NO additional fee (applies to all employees at your firm who sign in per the webinar participant instructions.) More information on the VPS StraightTalk webinar series can be found here.

Jim Hitchner's Valuation Products and Services (VPS) provides tools to assist practitioners in business valuation, litigation services, and forensics and fraud.

Valuation Products and Service, LLC is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Suite 700, Nashville, TN, 37219-2417. Web site: www.nasba.org.