Summary
Knowing the value of an asset and what determines that value is essential to making intelligent decisions – in selecting investments for a portfolio, in deciding the appropriate price to pay or receive in an acquisition or sale, and in making investment, financing and dividend decisions in managing a business. The premise of this course is that we can make reasonable estimates of the value of most assets and that the same basic principles determine the values of all types of assets, real and financial.
In this course, participants will learn about the various valuation techniques used by business consultants and bankers and discuss how the various elements of these models are derived, as well as how our innate biases and prejudices distort the valuation process. We will draw on illustrations faced by real companies in a wide range of industries in a variety of circumstances to help participants understand the complexity that underlies any valuation process.
The course covers the analysis of private equity and venture capital businesses. Throughout the course, candidates will gain an in-depth understanding of the mechanism underlying the creation and/or development of a company and the financial support it can receive from the financial system through venture capital investments. The course seeks to uncover how special financial intermediaries (i.e. private equity investors) finance through equity companies belonging to different stages of their life cycle, from the very beginning (start-up and early stage) to a more mature stage (i.e. expansion, mature age, etc.) or also remaining in crisis and decline.
Key benefits
This business valuation course provides candidates with the basic skills needed to perform detailed business valuation modelling using three main methods, namely the equity, income and market comparison methods.
The business valuation course will be a valuable asset for those seeking a detailed step-by-step explanation of how to value a company based on comparable companies, past M&A transactions and discounted cash flow (DCF) models.
After completing this course, you will be able to:
- Understand the difference between equity value and enterprise value
- Understand the factors affecting equity multiples and value a business using equity multiples
- Learn the most common multiples: EV/revenue, EV/EBITDA, EV/EBIT, P/E.
- Valuing the company by analysing comparable companies, using previous M&A transactions and discounted cash flow techniques
- Calculate free cash flows to the firm and free cash flows to equity.
- Outline the main drivers of free cash flow
- Valuing the business using the two-stage DCF valuation model
- Calculate the organization's cost of equity, cost of debt, and weighted average cost of capital (WACC)
Basic information:
- 4 weeks
- English
- On-line
- € 460
- Anytime
Testimonial
For whom the course is suitable
This course covers the basics of business valuation, including how to value businesses, equity and the enterprise. You will learn about the main valuation methods (intrinsic and relative), their strengths and weaknesses, and when to use each method. Therefore, this course is suitable for those who already have some financial or accounting fundamentals and want to develop and move further in this area.
What you will learn in the course
Specialization in startup valuation and financial analysis teaches the two most commonly used methods of determining the value of a startup. You will learn how to determine the value of founder ownership before and after additional funding, how to read financial statements and prepare pro forma reports, and how to determine the financial health and condition of a startup and estimate future revenue and value. You will then use various investment criteria such as net present value (NPV) and individual rate of return (IRR) to help you decide whether and where to invest your money.
We will discuss the basic principles of risk and return trading, portfolio optimization and security valuation. We will study and use risk and return models, such as the Capital Asset Pricing Model (CAPM) and multi-factor models, to evaluate the performance of various securities and portfolios. Specifically, we will learn to interpret and estimate regressions that provide us with both a benchmark to use for a security relative to its risk (determined by its beta) and a measure of the security's risk-adjusted performance (measured by its alpha).
Business and Financial Modelling is designed to help you make informed business and financial decisions. These sections of the course introduce you to spreadsheet models, modeling techniques, and common applications for investment analysis, business valuation, forecasting, and more. Upon completion, you will be ready to use your own data to describe financial facts, build scenarios, and forecast performance.
This course will teach you how to value mergers and acquisitions and how to select the optimal financing mix for a merger and acquisition. It focuses on all major types of M&A transactions, including strategic M&A, leveraged buyouts (LBOs), and restructuring transactions such as spin-offs and asset transfers.
Executive course tuition fee
If you are ready to take your career and personal life up a notch and want to get an education with an innovative and practical approach, don’t hesitate to apply!
Course tuition: € 460
ayment can be made in one lump sum or spread over up to 3 interest-free instalments. A first instalment of € 200 is always required before the start of the course.
Tuition fees include all study materials and access to all seminars or online lectures organised by the European Institute of Finance & Management.
About the certificate
Upon successful completion of the course, you will receive a certificate of completion from the European Institute of Finance & Management, which will be valuable evidence that you have acquired improved skills, knowledge and abilities in issues related to business valuation.
Throughout the course you will be continuously assessed in relation to several practical assignments. These assignments are always completed online and successful completion of these assignments is a requirement for completion of the entire course. You must therefore complete all the assignments given to you as part of your studies in order to be issued with a certificate of successful completion. These assignments vary from course to course and are based on the difficulty of the course and the requirements of the course sponsors or lecturers.
The certificate will be issued in your legal name and will be sent to you on successful completion of the programme as per the requirements set out at the address you have provided on your course application form. The certificate has unlimited validity and can be used throughout your career.
