Accountants often need basic business valuation knowledge and skills to assist their clients or employers. This course provides participants with practical insight into business valuation. Participants will learn about and apply various valuation tools such as the capitalized cash flow (CCF) approach and the discounted cash flow (DCF) approach to business case studies. The course also focuses on business valuation interpretation and the mechanics of the valuation process under an asset approach, income approach, and market approach.

This course will provide participants with the basic tools for approaching a business valuation. Whether they are assessing the reasonability of a transaction (e.g. a market transaction or a tax initiated process) or providing advice on a potential transaction, this course will provide candidates with the basic knowledge of what to look for, and where to be cautious. It will also provide candidates with a means of triangulating valuation conclusions in order to cross-check preliminary findings. The course utilizes a detailed case study that builds upon itself for each module that allows for practical application.

Topics Include:

This course enables participants to develop a variety of skills, including:

• Overview and application of valuation methodologies, including income approaches, market approaches, and asset approaches
• CCF and DCF valuation techniques and their application
• The calculation of maintainable earnings
• The determination of capitalization and discount rates
• A comparison of enterprise value and equity value
• Market valuation approaches using equity value and enterprise value multiples

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

Unlock learning anytime, anywhere with the Blackboard Learn app

Seamlessly access your on demand courses, assignments, and get PD hours on the go. Learn how to download now and elevate your education experience with the convenience of mobile learning.

By the end of this course, participants should be able to:

• Assess when to value the assets of a company individually versus when to value an enterprise as a whole.
• Create a bridge between enterprise value and equity value, including the impacts of redundant assets and debt-like items, as part of a valuation exercise.
• Calculate the cost of capital for a company, including: cost of equity, cost of debt and weighted average cost of capital, when formulating discount rates.
• Ascertain relevance between a subject company to value, comparable public companies and precedent transactions when triangulating value in a secondary approach.
• Utilize the basics concepts of specific valuation standards in a mock valuation engagement.