BV204-OOO - Advanced Topics in Business Valuation
Category: Business Valuation
Continuing Education: 28.8
Registration
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Course
Description
This capstone course applies the general valuation theory and principles
learned in BV201, BV202 and BV203 and introduces the student to a variety of
advanced valuation applications. This course is presented in the following
chapters (see more detail below): Pass-Through Entities; Intangible Assets;
Non-US Cost of Capital; Fairness Opinions; Solvency Opinions; Value Allocation
in a Complex Capital Structure; Employee Stock Ownership Plan Valuation;
Valuation of Debt and Preferred Stock; Litigation Services; and Advancement and
Accreditation.
Chapter 1. Pass-Through Entities (2 hours) covers topics including (i) the
economic and tax differences between pass-through entities and C corporations,
(ii) the Tax Court cases that changed the landscape of pass-through entity
valuation and (iii) the emerging valuation models used to quantify the value
differential between pass-through entities and C corporations.
Chapter 2. Intangible Assets (4 hours) covers topics
including (i) definition, identification and categorization of intangible
assets, (ii) introduction to applicable valuation methods, (iii) issues
related to goodwill and (iv) the excess earnings method.
Chapter 3. Non-US Cost of Capital (2 hours) covers
topics including (i) defining and evaluating various non-US country specific
risks and (ii) an overview of several quantification methods for non-US cost
of capital, including advantages and disadvantages of each.
Chapter 4. Fairness Opinions (1.5 hours) covers topics
including (i) corporate directors’ duties, (ii) foundational issues of
fairness opinions, (iii) underlying financial analyses and (iv) unique
fairness-related issues.
Chapter 5. Solvency Opinions (1.5 hours) covers topics
including (i) underlying bankruptcy and fraudulent conveyance issues, (ii)
foundational issues of solvency opinions, (iii) underlying financial analyses
and (iv) unique solvency-related issues.
Chapter 6. Value Allocation in a Complex Capital
Structure (5 hours) covers topics including (i) fair value considerations,
(ii) valuation methods for early-stage companies, (iii) relevant features of
equity securities, (iv) primary equity allocation methods and (v) issues
relating to estimating volatility.
Chapter 7. Employee Stock Ownership Plan Valuation
(1.5 hours) covers topics including (i) an introduction to ESOPs, (ii) various
ESOP-specific engagement issues and (iii) the valuation impact of various
ESOP-specific characteristics.
Chapter 8. Valuation of Debt and Preferred Stock (1.5
hours) covers topics including (i) an overview of security characteristics
affecting value, (ii) fundamentals of credit analysis and (iii) adjusting a
market-derived yield for company-specific issues.
Chapter 9. Litigation Services (1.5 hours) covers
topics including (i) an overview of the U.S. judicial system, (ii) types of
disputes requiring valuation evidence (iii) principals of evidence and
testimony, (iv) the litigation process and (v) measures of economic damages
and available remedies.
Chapter 10. Advancement and Accreditation (1 hour) covers topics including
(i) prerequisites for advancement, (ii) experience requirements, (iii)
guidelines for submitting appraisal reports, (iv) a review of common report
flaws and (v) recommendations for success.
Instructional Methods
Methods include lectures, discussions and individual/ group exercises
and assignments. Laptops or mobile devices are necessary for this
course as you will receive eHandouts throughout the class.
Course
Audience
BV204 is one of four Principles of Valuation
(POV) courses required for those seeking a credentuial with ASA. In
addition, this course is also of interest to accountants, attorneys,
business brokers, investment bankers, Internal Revenue Service staff and the
appraisal community at large who are involved or interested in the valuation of
businesses.
NASBA and Continuing Professional Education (CPE) Credit
The American Society of Appraisers 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 the final authority on the acceptance of individual
courses for CPE credit. Complaints regarding registered sponsors may be
submitted to the National Registry of CPE Sponsors through its website www.learningmarket.org.
CPE Credit: Up to thirty (30) CPE credits in Specialized
Knowledge
Program Level: Fundamental
Delivery Method: Only group-live
courses are approved for CPE
Prerequisites: None
Advanced Preparation:
None
Policies: ASA's
Refund and Cancellation Policy and ASA's Complaint Resolution
Policy
No prerequisites for this course.
Course Agenda
Chapter 1. Pass-Through Entities (2 hours)
Chapter 2. Intangible Assets (4 hours)
Chapter 3. Non-US Cost of Capital (2 hours)
Chapter 4. Fairness Opinions (1.5 hours)
Chapter 5. Solvency Opinions (1.5 hours)
Chapter 6. Value Allocation in a Complex Capital Structure (5 hours)
Chapter 7. Employee Stock Ownership Plan Valuation (1.5 hours)
Chapter 8. Valuation of Debt and Preferred Stock (1.5 hours)
Chapter 9. Litigation Services (1.5 hours)
Chapter 10. Advancement and Accreditation (1 hour)
Learning Outcomes
Upon completion of this course, students will be able to:
-
Identify the primary attributes of a pass-through entity
(PTE);
-
Understand how PTEs differ from C corporations:
-
Describe how
PTEs have historically been valued by appraisers;
-
Recognize the
major Tax Court cases relating to valuation of pass-through entities
(PTEs);
-
Identify the
major arguments for and against tax-affecting the earnings of
PTEs;
-
Identify the
key factors affecting the value of PTEs;
-
Understand how
distribution policies affect the advantages/disadvantages of being a PTE
shareholder; and
-
Recognize the
emerging theory regarding PTE Valuation and leading practitioner
models: