BV201-OOO - Introduction to Business Valuation - Market Approach

Registration

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Course Description

BV201 is the first course in the Principles of Valuation (POV) course series. This course will introduce practitioners to the steps necessary to complete a valuation assignment and will provide an overview of how to apply the Market Approach . More specifically, the course will provide a Guideline for Public Company and Merger and Acquisition Methods. Additionally, the course will review:

• Introduction to Business Valuation, Business Valuation Theory and a general overview of the Market Approach;
• Defining the Appraisal Assignment;
• Data Gathering;
• Revenue Ruling 59-60;
• Engagement Assignments;
• Data, Company and Industry Analysis;
• Economic and Financial Statement Analysis;
• GPC Steps 1, 3, 4, 7, 8 and 9 Covering Guideline Search Selection;
• Normalizing Financial Statements;
• Calculating Selecting Multiples;
• Adjusting and Applying Multiples and Reconciliation;
• The Merger and Acquisition Method; and
• Rules of Thumb and Other Market Methods.

Instructional Methods

Methods include lectures, discussions and individual/group exercises and assignments. Students are required to bring a laptop or mobile device to class as eHandouts will be provided throughout the course.

Course Audience

BV201 is one of four Principles of Valuation (POV) courses required for those seeking a credential with ASA.  In addition, this course is of interest to accountants, attorneys, business brokers, investment bankers, Internal Revenue Service staff and the appraisal community at large who are involved and/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

Agenda

This course will cover the following topics:

• Introduction
• Business Valuation Theory
• Defining the Appraisal Assignment
• Data Gathering
• General Economic and Political Analysis
• Industry Analysis
• Company Analysis
• Overview of the Market Approach
• GPC Step 1 - Guideline Search and Selection
• GPC Step 2 - Normalize Financial Statements
• GPC Steps 3 - 4 - Calculation and Selection of Multiples
• GPC Steps 5 - 6 - Compare and Adjust GPC Multiples
• GPC Steps 7 - 9 - Apply Multiples, Reconcile and Adjust
• The Merger and Acquisition Method
  Rules of Thumb and Other Market Methods

Learning Outcomes

Upon completion of this course, students will be able to:

• Cite the basic approaches and theories to business valuation;
• Identify the relevant standards under which business valuations are completed;
• Define an appraisal assignment;
• Gather useful data necessary to complete the assignment;
• Analyze the impact of the general economic, political and industry environments on the subject company (and in turn, value);
• Complete a company analysis of qualitative and quantitative factors that impact value;
• Describe the premise of the Market Approach;
• Define both the Guideline Public Company Method and the Merger and Acquisition Method;
• Assess the applicability of different Market Approach methods to a specific assignment;
• Compare and adjust guideline public company multiples;
• Apply the guideline public company and merger and acquisition methods; and
• Reconcile to an indication of value.