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Valuation of Private Firms

Valuation methodologies and techniques for private firms and start-up companies

About This Program:

This one day program will address the theory and process of valuing privately-held companies as investment opportunities. The course assumes that class participants possess a fundamental background in accounting and finance theory and it will build on this knowledge in exploring the valuation process.

The focus of the course will be the three primary approaches to valuing privately-held companies-those not traded on an active exchange. The program will include illustrations, exercises and cases from actual valuations performed by the instructor. There will also be discussion of start up companies and technology oriented businesses.

Who Should Attend:

Owners, prospective investors, entrepreneurs, executives and service providers who work with private companies or development stage businesses and need to obtain a fundamental understanding of private company valuation.

Learning Objectives:

  • Why every private company can have three different values at the same time and why each must be understood.
  • Practical applications of the three fundamental approaches to business valuation and how and when to use each.
  • How to assess factors that most often drive risk and value in private firms.
  • How to build, protect and harvest private company wealth.

Program Outline:

  • Illustration of the primary metrics of private company valuation for decision-making.
  • Equity versus invested capital models and how they are employed.
  • Standards of value and their effect on owner decision-making.
  • Theory and application of the income approach to business valuation.
  • Theory and application of the market approach to business valuation.
  • Theory and application of the asset or cost approach to business valuation.
  • Case studies incorporating all of the valuation approaches and reconciliation of results.
  • Techniques to build, protect, and harvest private company wealth.

Days:

One full day.

Professor Bio:

Frank C. Evans, a principal in Evans and Associates Valuation Advisory Services, holds three of the nationally recognized business valuation credentials, Certified Business Appraiser (CBA), Accredited Senior Appraiser in Business Valuation (ASA), and Certified Public Accountant/Accredited in Business Valuation (CPA/ABV). He works with lower middle market through smaller public companies and has extensive valuation related consulting experience in many industries.

Mr. Evans has spoken at over 100 valuation seminars and conferences throughout North America and Europe. He is the co-author, with David M. Bishop, of VALUATION FOR M&A: Building Value in Private Companies, published by John Wiley & Sons, Inc. (of which a second edition is currently in the works), and has authored articles that have appeared in all of the leading business valuation journals. He is a member of the Institute of Business Appraisers (IBA), the American Society of Appraisers (ASA) and the American Institute of Certified Public Accountants (AICPA), has taught business valuation courses for each of these organizations and has spoken at each of their national conferences. He designed the seminar, "Valuation of Companies: The Practical Aspects," for the American Management Association for whom he has taught for over 20 years. A former faculty member at The Pennsylvania State University, he continues to lecture on valuation topics at various universities. He also served as Editor of Business Appraisal Practice, the journal of The Institute of Business Appraisers. Large organizations for which he has consulted include ExxonMobil, UPS, Ford, Accenture, Caterpillar, Federal Express, the New York Stock Exchange, Credit Suisse First Boston, Empire Blue Cross Blue Shield, the New York Society of Securities Analysts, PetroCanada and Fiserve. He is the recipient of several prestigious awards, including admission to the College of Fellows of the Institute of Business Appraisers.