Building on the concepts taught in Business Valuations: Fundamentals, this course gives participants a more detailed insight into some of the more complex issues associated with business valuations.

This course dissects the basic approaches from Business Valuations Fundamentals, so that practitioners can recognize the limitations of various valuation approaches, and provides information that will allow professionals to conduct supplementary analysis for a more robust conclusion of value. Participants will learn about topics such as cost of capital, terminal value quantification, synergy calculations, and valuation discounts. In addition, the course provides an introduction to the process of valuing securities other than common shares. Practical application of the concepts is provided by utilizing a detailed case study that extends into each module.

Topics Include:

• Utilize the capital asset pricing model to interpret the biases inherent in unadjusted Beta as a result of capital structure and tax status of a reference company.
• Identify the factors that make a "comparable" company more or less comparable in the context of a business valuation and when to exclude certain companies from one's analysis.
• Incorporate market conventions with respect to including business combination synergies within the valuation of a single company.
• Critique the use of (or assess the reasonability of) various valuation discounts.
• Complexities associated with DCF valuation methods, including how to calculate cost of capital (equity and debt), cash flow, and residual value assumptions
• Valuation of a business using multiples
• Valuation and buyer intent - strategic buyers versus financial buyers
• The identification of and valuation of synergies
• The application of valuation discounts, including minority interest, marketability, and key person discounts
• An introduction to valuation issues specific to other securities, such as preferred shares and convertible debentures
• A review of different valuation reports in Canada

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2021, 2022 or 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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