Two-Day Programme
Delegate places are limited due to the practical nature of the course. Laptops are provided.
Explaining jargon
- Defining valuation balance sheet
- Importance of ROCE and Net Investment
- Typical items that can mislead investors and valuers.
Defining ROCE: the impact of...
- Different standards/policies
- Goodwill
- Pension costs
- JV’s/Associates
- Off Balance sheet: out of the picture?
- R&D expenses
- Working capital
- Tax
- Private company issues
Modelling extra’s...
- Depreciation tax shield, deferred tax & capital allowances
- Tax losses
- Stock options – expenses & dilution
- JV/Associates: cost or valuation?
- Dividends
- Restructuring and pensions provisions: creating a level playing field?
Valuation
Valuation - balance sheet
- Reconciliation DCF/multiple valuation techniques
- Defining growth, return and risk
- Importance of ROCE and key drivers: margin and asset efficiency
Multiple valuation
- Identifying key strengths/weaknesses of the following multiples:
-EV/EBITDA: ROCE is key
-EV/Sales: is margin important?
-PEG: misleading numbers?
-Price/Book: good or bad predictor of value?
-Price/sales: when is it useful?
- Choosing most appropriate multiple
-Bear/Bull times
-Distressed equity/restructuring – are multiples appropriate?
Discounted Cashflow
- WACC revisited
- Estimating optimum leverage
- Characteristics of:
-Cyclical companies
-High growth/early stage companies
-Stable companies
-Distressed companies
- 1, 2, 3 stage DCF models
- Defining Free cashflow using NOPAT
- Dealing with the terminus
- Impact of installed and incremental ROCE
Restructuring
- Liquidation or going concern - valuing the options
- Valuing the competing interests
-Senior debt
-Subordinated debt
-Equity classes
- Restructuring options for:
-Senior debt
-Subordinated debt
-Equity classes
- Maximising value under a restructuring
Case Study:
- Valuing the equity and debt of all stakeholders and deciding on the best course of action to balance competing interests.