W. James Lloyd presented on valuing privately held businesses for divorce cases. He discussed several key points, including:
1) Common valuation methods like the market approach, asset approach, and income approach. The discounted cash flow method under the income approach is often most appropriate for valuing operating companies.
2) Important considerations like understanding the business, industry, financials, and operations.
3) Additional analyses may be needed for divorce cases involving allegations of fraud, such as forensic accounting procedures to identify potential fraud through red flags, document analysis, and tracing funds.
There are specific steps to take when preparing a supportable business valuation.
If you need a business valuation and want to make sure that the valuation expert covers all of the bases, you should look at our slides to understand the basics of the valuation process.
Introduction to Business Valuation, Fair Market Value, reasons and elements of business valuation, methodologies of business valuation, case study on net asset value.
There are specific steps to take when preparing a supportable business valuation.
If you need a business valuation and want to make sure that the valuation expert covers all of the bases, you should look at our slides to understand the basics of the valuation process.
Introduction to Business Valuation, Fair Market Value, reasons and elements of business valuation, methodologies of business valuation, case study on net asset value.
Demonstrating Good Ethics in Business Valuation Modeling Ralph Colucci, CFA
Summary presentation, which provides an overview of navigating thru the sometimes troubled waters of corporate finance and valuation consulting with good ethical behavior in an influential business world.
Veracap M&A International Inc. is a leading investment bank advising on acquisitions, divestitures, financing and shareholder value initiatives.
This presentation provides a overview of basic concepts and principles of business valuation and walks you through valuation methodologies, rates of return and valuation multiples, acquisitions and divestitures.
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Valuation of Private vs. Public Companies. Private company valuations are discounted based on several risk factors associated with private sector investing, which results in a marked difference between the valuation of a privately held company, subsidiary or a division and a publicly traded corporation.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
This presentation "FEMA Valuation Aspects(FDI & ODI) and Registered Valuation" has been delivered by Mr. Chander Sawhney at East of Kailash Study Circle of ICSI on 22/11/2014.
Demonstrating Good Ethics in Business Valuation Modeling Ralph Colucci, CFA
Summary presentation, which provides an overview of navigating thru the sometimes troubled waters of corporate finance and valuation consulting with good ethical behavior in an influential business world.
Veracap M&A International Inc. is a leading investment bank advising on acquisitions, divestitures, financing and shareholder value initiatives.
This presentation provides a overview of basic concepts and principles of business valuation and walks you through valuation methodologies, rates of return and valuation multiples, acquisitions and divestitures.
Everything you need to know about the valuation reportResurgent India
A business valuation report is an attempt to thoroughly document and analyze the value of a company or a group of assets by considering all relevant market, industrial, and economic aspects.
Valuation of Private vs. Public Companies. Private company valuations are discounted based on several risk factors associated with private sector investing, which results in a marked difference between the valuation of a privately held company, subsidiary or a division and a publicly traded corporation.
Corporate Valuations “Techniques & Application”: A compilation of research oriented valuation articles.
Contents: Business valuation, Relative valuation, Sum of the parts valuation and value creation, ESOP valuation, Discounted Cash Flow Valuation, Enterprise Valuation etc.
This presentation "FEMA Valuation Aspects(FDI & ODI) and Registered Valuation" has been delivered by Mr. Chander Sawhney at East of Kailash Study Circle of ICSI on 22/11/2014.
How to Become a Thought Leader in Your NicheLeslie Samuel
Are bloggers thought leaders? Here are some tips on how you can become one. Provide great value, put awesome content out there on a regular basis, and help others.
Mr. Chander Sawhney, Partner & Head – Valuation & Deals, Corporate Professionals shared his thoughts as a guest Speaker on Relative Valuation - Techniques & Application at a Business Valuation Masterclass organised by VC Circle on 31st August, 2016.
Relative Valuation in which value of an asset or liability is done by comparing it to its Peers is pervasive and preferred for ascertaining Fair Value at a point of time as it reflects the market positioning of the Industry and Peers at that time. While Discounted Cash Flow (DCF) method is applied for arriving at Fundamental Valuation, most M&A transaction are based on Relative Valuation multiples (mostly Earnings based). The valuation ratio typically expresses the valuation as a function of a measure of Key Financial Metrics like PE, EV/EBITDA, EV/Sales or Book Value Multiple.
But before using a multiple, one should know the fundamentals determining the multiple and how changes impact it. Sanity check through use of fundamental valuation method like DCF is strongly recommended.
About Corporate Professionals Valuation Practice
Corporate Professionals Capital Pvt. Ltd. is a SEBI Registered (Cat-1) Merchant Banker and has a successful track record of providing a broad range of M&A and Transaction Advisory Services. Our Dedicated Team has more than 10 years of rich Valuation experience and we have executed more than 500 Corporate Valuations for clients of International Repute across different Context, Industries and Boundaries.
To know more about Our Valuation offerings and how we can help you, please visit us at www.corporatevaluations.in or download our Valuation profile @ http://www.corporatevaluations.in/VALUATION_PROFILE.pdf
Private Equity Valuation Methods improve active equity portfolio by valuing a business/company that is the core task of the financial analyst. Most PE/VC firms estimate a company’s value with the help of Equity Valuation Methods. To evaluate an organization, there should be enough understanding of Venture Valuation, which is considered as the most holistic evaluation approach.
As Associate Principal at The Monitor Group (now Monitor Deloitte) in China, part of my of my role was helping train 1st Year consultants. This is the summary presentation from a day long Masterclass in the commonly used techniques in assessing a firm's "true" value.
This presentation was made at the Washington Area Community Investment Fund (Wacif). This presentation goes over how to use financial statements and tools to make decisions.
Contents:
Business Valuation,
Relative valuation,
Sum of the Parts (SOTP) Valuation and Value Creation,
ESOP Valuation,
Discounted Cash Flow (DCF) Valuation,
Enterprise Valuation,
Valuation Discount Applicable to Holding Companies,
Valuation in Information Technology (IT) Sector,
RBI Valuation
14. Balance Sheet Analysis Page Cash should be enough but not too much! Accounts Receivable Inventory Fixed Assets Accrued Expenses Debt Obligations collectability consider obsolete and slow moving “ in-use” vs. resale value sometimes aren’t recorded use of funds and repayment terms
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19. Adjustments for Lack of Control Adjustments/discounts for lack of control (DLOC) are used to adjust “control” level indications of value (i.e. determined from control level cash flows) to minority level value indications DLOC are generally based on benchmark data plus qualitative analysis Note: the DLOC adjustment should be reasonable under the circumstances (e.g. would someone likely pay an implied premium for a controlling interest in the subject company?) Page
20. Adjustments for Lack of Marketability Adjustments/discounts for lack of marketability (DLOM) are used to adjust indications of value to a cash equivalent basis Multiple methods available to determine benchmark discounts – several of which are controversial Analysis generally includes both qualitative and qualitative factors Resulting value should be reasonable under the circumstances Page
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22. Enterprise vs. Personal Goodwill Page Enterprise goodwill is part of the business and should be included in the entity’s value Personal goodwill is an individual asset and (generally) should not be included in the entity’s value
23. Separating Personal Goodwill Personal goodwill can be separated by normalizing compensation and/or performing a “with and without” analysis Primary Reason – Avoiding the “double dip” between business value and the individual’s earnings capacity Page
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26. Valuation Organizations and Credentials Page The most common business valuation organizations and credentials include: American Institute of CPAs Accredited in Business Valuation (“ABV”) credential American Society of Appraisers Accredited Senior Appraiser (“ASA”) credential Institute of Business Appraisers Certified Business Appraiser (“CBA”)
30. Fraud Triangle Page Culture or environment enables management or other employees to rationalize committing fraud Circumstances exist – ineffective or absent control, or management ability to override controls – that provide opportunity Management or other employees have an incentive or are under pressure INCENTIVE RATIONALIZE FRAUD OPPORTUNITY
36. Red Flags Standard of living is unusual relative to known financial resources Disorganized operations Poor internal controls – easy for management to override Unusual and/or unsupported journal entries Out of balance subsidiary ledgers Page
37. Red Flags Unusually consistent financial performance Disconnect between cash and profitability Financial results that are in substantial contrast to other relevant factors such as economic conditions, peer groups, etc. Page
38. How to Find It – Basic Preliminary Steps Page Determine that proper predication has been established by the client Obtain an understanding of the specific fraud suspicions or allegations by discussing the case with client/attorney and review any work already performed Start gathering and analyzing data
39. Gathering and Analyzing Data Page Relevant data is generally gathered from a combination of methods such as: Obtaining and reviewing documents - from client and/or other sources Personal interviews Observations Background investigations Public record inquiries
40. Reviewing Documents – Caution Page Data should be gathered/analyzed with a high degree of skepticism Falsified documents are often used in collusion with others in an effort to conceal the fraud Proper chain of records custody may become an issue especially if documents have been altered or falsified
41. Analytical Procedures Look for unusual or unexplained trends: Year-to-year comparisons of financial data Benchmark comparisons Analytical procedures can be useful for purposes of identifying potential problem areas Page