Understanding the Basics of Valuation
In the corporate world uncounted decisions are of financial nature and imply valuation related matters. Whether it is a merger or an acquisition (e.g. a supplier or a competitor), the disposal of part or an entire business, compliance with financial reporting or regulatory requirements (e.g. impairment test), the acquisition or the issuance of a complex financial instrument, or change in ownership (e.g. in the context of a succession), valuation is key!
This course introduces participants to the general principles and practical implications of valuation in order to understand how to apply valuation frameworks, and to improve strategic and business decision-making.
The main features of the program are:
Introduction to valuation
- What is valuation?
- What contexts would suggest a particular focus on valuation?
- What circumstances urge reaching out to valuation experts?
Key value drivers
- Underlying fundamentals (e.g. company financials)
- Macro and micro environment
- Financial markets
Main valuation approaches
- Principles of valuation (e.g. time value of money, NPV,…)
- Market Approach (e.g. quoted prices, multiples,…)
- Income Approach (e.g. discounted cash flows,…)
- Other (e.g. replacement cost approach, net assets,…)
- Main advantages and limitations of each approach
- Key takeaways
This course is followed by a second module on “Advanced Valuation” (subject to minimum participant number)
Benefits of the program
Upon completion of this program, participants will understand basics of valuation, including:
Key valuation principles and concepts
Key valuation methodologies and drivers
How to apply valuation to make better strategic decisions
Executive, non-executive and independent directors who would like gain a basic understanding of valuation.