This module contains three classes:

Anatomy of a Business Valuation Report

This class takes leaners through a real business valuation report. Along the way, you’ll carefully examine:

• the appraiser engagement letter (where many appraisal engagements go wrong)
• the report transmittal letter (which addresses a panoply of limiting issues)
• the critical assignment definition (many appraisal reports don’t value the right thing)
• Economic outlook (what’s critical to include-this section often contains extraneous information)
• Industry outlook
• Conclusion of value

Overview of the Business Valuation Process

This course is a business valuation-oriented presentation geared towards finance professionals who are not certified business appraisers. The presentation is in the form of an overview – but with sufficient depth to appeal to even those with a strong working knowledge of the valuation process and its various outputs in the form of reports. This course will cover the following topics:

• Articulate the definition of and primary reasons for obtaining a business valuation
• Review the primary business valuation certification-granting organizations
• Understand the noteworthy differences between each of the various valuation purposes, i.e. how do valuation analyses differ from one purpose to the next?
• Identify the primary types/costs/turnaround times for different business valuation engagements and reports
• Understand and differentiate between the primary measures or standards of value, premises of value and levels of value as they are commonly utilized by professional appraisers
• Recognize and understand the different levels within the “market for business control” and how the valuation environment changes across the three main segments, e.g. the size effect, asset sales versus equity sales, etc.
• Introduce the classical valuation approaches (income, market and asset/cost approach) and discover the proper rationale for determining which approaches and methods are most suitable for a given engagement
• Review and clarify the importance of “normalization adjustments” within the context of estimating fair market value

Common Errors in Business Valuation Reports: What Exit Planners Need To Look For

Business valuation remains important income tax purposes. This class will consider What dictates the contents of a business valuation report, the anatomy of a good business appraisal report and 30 common errors and omissions that arise in business valuation, including:

• Failure to Adequately Consider the Willing Seller
• Failure to Consider the “Hypothetical” Nature of the Willing Buyer and Willing Seller
• Failure to Conduct Adequate Due Diligence
• Failure to Provide Sufficient Explanation
• Failure to Apply Discussion of Economic Factors to the Subject Company
• Failure to Make Inquiries With Significant Third Parties
• Failure to Set Forth Adjustments to Financial Statements in the Business Appraisal Report
• “Cherry Picking” Valuation Multiples
• Failure to Use Common Sense
• Math Errors in a BV Report