Business Valuation Workshop

Business Valuation Workshop - 25 August 2017 

Trainer: Ong Woon Pheng, CFA

Eligible for FTS and Skills Future Credit : Programme Code : P160310SFW

Overview:

Business valuation is a set of procedures used to estimate the economic value of an owner’s interest in a business. It is often being carried out for transactional, financial reporting or legal proceeding purpose. As a result, this is a much sought after skill-set in business and practice.

This workshop is intended to provide a concise coverage of valuation principles and methods for business and business interest promulgated by International Valuation Standards Council, namely IVS (2017).

We will discuss various valuation procedures including defining the assignment, analyzing financial statements, considering the three approaches to value, selecting and applying appropriate valuation methods, applying discounts / premiums and synthetizing a conclusion of value.

The goal is not only to equip participants with technical knowledge, but also to apply key concepts and valuation techniques by attempting a case study.


 Who should attend ?

This workshop is designed for business appraisers, CPAs, financial analyst, investment advisors, M&A specialists and valuation professionals.

Training Methodology

Workshop style and case study drive

 

Course Outline :

1. The Assignment

 - Identification of client for whom the valuation assignment is being produced 

 - Identification of asset to be valued and interest in that asset

 - Purpose of valuation should be clearly stated

 - Basis of value must be appropriate for the purpose

 - Valuation date

 - Extent of investigation, including any limitations or restrictions

 - Description of report and contents specified by the standard

2. Obtaining Information

 - Gathering sufficient evidence to ensure valuation is properly supported

 - Reliance on information supplied by management or other parties

 - Business information including its history may give guidance on future expectations

 - Economic and industry information is essential for business valuation 

 - Sources of information e.g. Bloomberg, Economist Intelligence Unit, MarketLine

3. Financial Statement Analysis

 - Spread historical financial statements to identify trends

 - Normalizing adjustments include non-recurring and non-operating items

 - Controlling adjustments include regularizing excess / deficit compensation, elimination of personal expenses, etc.

 - Common-size analysis

 - Ratio analysis e.g. liquidity, activity, leverage, profitability ratios

 - Comparative analysis i.e. comparison to industry average

4. Income Approach

 - Valuation approaches i.e. Income, market and cost approach

 - Approaches to value businesses and business interest

 - Valuation methods

   - Capitalized cash flow method

   - Discount cash flow method

 - Equity value vs. enterprise value

 - Define net cash flows to equity holders

 - Define net cash flows to equity and debt holders

 - Estimate future cash flows using 5 different methods

 - Discount rate

   - Cost of equity

   - Weighted average cost of capital (WACC)

 - Type of value obtained e.g. control / minority, marketable value

5. Market Approach

 - Selecting comparable companies and factors to consider

 - Guideline publicly-traded comparable method

 - Comparable transactions method

 - Advantages and disadvantages

 - Sample size: Smaller or larger?

 - Valuation multiples e.g. EV / EBITDA, P/E, P/B

 - Normalization adjustments include non-recurring and non-operating items

 - Size adjustments should be applied to smaller companies

 - Type of value obtained e.g. control / neutral, marketable value

6. Asset Approach

 - Asset accumulation method i.e. summation of assets and liabilities

 - Replacement cost method

 - Reproduction cost method

 - Valuation of individual assets, including intangible assets

 - Advantages and disadvantages

 - Type of value obtained e.g. control, marketable value

7. Valuation Discounts and Premiums

 - Levels of value determined by type of interest

 - Discount for lack of control (DLOC) and control premium

 - Control premium study by Mergerstat

 - Factors influencing DLOC

 - Discount of lack of marketability (DLOM)

 - Pre-IPO study by Emory

 - Restricted stock studies

 - Factors influencing DLOM

8. Valuation Conclusion

 - Reconciliation and selection of valuation method

 - Conclusion of value may be expressed as point estimate or range of values

 - Report contents required by the standard

Testimonials

“Very clear and succinct presentation style”
“Very useful as the trainer is sharing from a practitioner perspective” Mr. Hou Wey Fock?
 
 

Eligible for FTS and Skills Future Credit : Programme Code : P160310SFW

This workshop is eligible for 7 CE credit hours and 7 CPD credit hours.

Course Fee

CFA Singapore member price : S$880* (Early Bird fee) / S$980* (Standard fee)

Non-member price : S$980* (Early Bird fee) / S$1,180* (Standard fee)

Early bird fee valid till 25 July 2017

* Prices before 7% GST

* 10% off Group Discount available

Please email eventmanagement@cfasingapore.org for more details

Download course brochure here      |      Click here for our CFA Singapore official webpage

Ong Woon Pheng, CFA

Woon Pheng has been in the accounting and finance profession for more than a decade and currently heads the financial advisory services department at CAS. He was previously with RSM and PKF, both mid-tier accounting firms. Currently, he is a Chartered Accountant of Singapore (CA Singapore), Fellow Member of Association of Chartered Certified Accountants (FCCA), Chartered Financial Analyst (CFA), Certified Fraud Examiner (CFE), Accredited Tax Practitioner (ATP) and a member of International Association of Consultants, Valuators and Analyst (IACVA). He is also an adjunct lecturer at SIM University and Kaplan Higher Education. He has worked on numerous types of engagements including accounting and financial reporting, business valuation, valuation for financial reporting, corporate secretarial, corporate tax, forensic accounting, litigation support, internal audit, merger and acquisition transactions, financial due diligence, liquidation and corporate restructuring. In particular, he has been involved in numerous valuation assignments including, inter alia: - Appointed by minority shareholders to perform a business valuation to appraise the fair value of a group of companies operating in the airline agencies industry. This was in connection with a dissenting shareholder action. The appraised value of the minority stake was approximately SGD 10 million. - Appointed by minority shareholders to perform a business valuation of a closely held business operating in the civil engineering and property development industry. This appraisal was for the purpose of assisting them with the divestment of their minority interest, which was valued at about SGD 1.7 million. - Appointed by minority shareholders to assess the adjusted net tangible asset value of two closely held firms operating in the transportation and wholesales of construction materials industry. This appraisal was for the purpose of assisting them with an impending divestment and the appraised value of both companies was estimated to be SGD 36 million. - Involved in a litigation support assignment where a premier recreation club brought action against its former directors. This engagement involved, inter alia, an appraisal of fair market value of the recreation club, which was estimated to be worth about SGD 130 million. - Appointed by a minority shareholder to perform a calculation engagement (specifically using the asset approach) on a group of private companies (valued at about SGD 36 million) in the trading and transportation of basic building materials. This appraisal was for the purpose of assisting the administrator of the Estate with the disposal of its financial assets. - Appointed to perform a calculation engagement (specifically using the asset approach) on a closely held company in the retail sale of jewellery and artifacts. This appraisal was for the purpose of assisting the shareholder with an impending divestment. - Appointed by a company listed on Singapore Exchange to assess the fair value of an acquiree’s identifiable assets acquired (i.e. tangible and intangibles assets) and liabilities assumed for the purpose of assisting management with its allocation of purchase price. The target entity is operating in the manufacture and repair of lifting equipment industry. - Appointed by a company listed on Singapore Exchange to identify and appraise the fair value of intangible assets on a group of companies operating in the telecommunications industry. This is for the purpose of assisting management with its allocation of purchase price in connection with an acquisition. - Appointed by a company listed on Singapore Exchange to perform a valuation to assess the fair value of put and call options granted by its vendors for financial reporting purpose. - Appointed by subsidiaries of a company listed on Singapore Exchange to perform an impairment review and impairment test on intangible assets i.e. customer relationships and concession agreement for financial reporting purpose.

DATE:
Friday, August 25, 2017-
Friday, August 25, 2017

TIME:
09:00 a.m.-05:00 p.m.

LOCATION:
TBC
TBC

Speaker(s):
Ong Woon Pheng, CFA


Early registration by July 25, 2017
$942 - CFA Singapore Member / Associate Member
$1,049 - Candidate

After July 25, 2017
$1,049 - CFA Singapore Member / Associate Member
$1,263 - Candidate
SelectPricing CategoryEarly Bird PricesStandard Prices
CFA Singapore Member / Associate Member 942 (active) 1049

Candidate 1049 (active) 1263

 



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