Business Valuations - Approaches and Methods

  • 4.1
1 hour on-demand video
$ 12.99

Brief Introduction

This course covers business valuation basics.

Description

This course covers business valuation basics.  The valuation process starts with understanding and calculating the data that must be compiled before applying the data to the valuation methods. 

Next, the course shows how to apply data to the Discounted Cash Flow Method, Capitalization of Earnings Method, and the Selling Market Method which is based on the multiples of which similar companies have sold (EBITDA, Book Value and Earnings). All three methods are then weighted to arrive at an estimated Fair Market Value of a business.  The Fair Market Value estimated by the process is then validated by calculating a buyer’s return on equity in a fictitious sale of the company.

Valuations limited to only financial data and calculations are technically referred to as the “calculated value”.  A certified valuation professional would need to make a site visit and interview the appropriate personnel to understand any subjective adjustments that are needed in order to make the valuation compliant with IRS Ruling 59-60.  The process presented in the course follows the general process utilized by most valuation professionals.

If you would like Continuing Education Credit (e.g. CPE, CE, CPD, etc.) for this course, it is available if you take this course on the Illumeo dot com platform under course title: Business Valuations - Approaches and Methods to arrive at Fair Market Value. Illumeo is certified to provide CPE in over two dozen different professional certifications covering finance, accounting, treasury, internal audit, HR, and more. However, in order to receive CPE credit the courses must be taken on an ‘approved-by-the-governing-body’ CPE platform, and for over two dozen corporate professional certifications, that is the Illumeo platform. Go to Illumeo dot com to learn more.

Requirements

  • Requirements
  • No advanced preparation or prerequisites are needed for this course.
  • A strong background in finance or accounting with clear understanding of financial statements and their requirements is helpful.
$ 12.99
English
Available now
1 hour on-demand video
Illumeo Learning
Udemy

Instructor

Illumeo Learning

  • 4.1 Raiting
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