AICPA National Business Valuation School

Over the course of an information-packed five days, you’ll be exposed to fundamental relevant theory, applications, best practice methods and controversies. You will return to work not only well-prepared for the ABV exam — you will be ready to obtain maximum results for your business valuation engagements.

Monday: Valuation Introduction, Research and Analysis and the Asset Approach
Tuesday: The Income Approach and Cost of Capital/Rate of Return
Wednesday: The Market Approach, Discounts and Premiums
Thursday: Reports, Standards and Tax Valuations
Friday: Valuation Essentials Case Study

Who Should Attend
Practitioners interested in creating or growing a business valuation discipline within their firms. The School is also ideal for mid-level CPAs planning to attain the Accredited in Business Valuation (ABV) Credential.

The Business Valuation School is also being offered in:

• July 27-31, 2009 — Atlanta, GA
• August 17-21, 2009 – Lewisville, TX

DAY ONE (MONDAY) – 8:00am-5:00pm
VALUATION INTRODUCTION, RESEARCH AND ANALYSIS AND THE ASSET APPROACH
Discuss basic standards of value, research techniques, analysis of financial statements and company risk factors and the asset approach to value. The course addresses relevant theory, applications, best practice methods and controversies through easily understood text, examples and exercises.

OBJECTIVES:
•   Understand the what, where, why and when of business valuation, including research sources, techniques, planning and presentation
•   Analyze company financial statements and risk environment
•   Understand the application of the asset approach

HIGHLIGHTS:
•   Standards of value
•   Principles of appraisal practice
•   Research information sources: financial, economic, industry and guideline companies/transactions
•   Historical financial statement analysis (includes case study)
•   Normalization adjustments
•   Ratio, risk and macro environmental analyses
•   Restating a balance sheet to value (includes case study)
•   Understanding real estate and equipment appraisals

DAY TWO (TUESDAY) – 8:00am-5:00pm
THE INCOME APPROACH AND COST OF CAPITAL/RATE OF RETURN
Discuss the income approach and cost of capital/rate of return. This course addresses relevant theory, applications, best practice methods and controversies through easily understood text, examples and exercises.

OBJECTIVES:
•   Gain an understanding of income approach theory, methodologies and applications
•   Learn types of cash flow models
•   Understand the methods and choices for calculating cost of capital

HIGHLIGHTS:
•   Normalization and adjustments to financial statements
•   Discounted and capitalized cash flow methods
•   Cost of capital concepts, methods and sources of data
•   Growth rates, terminal value and equity vs. invested capital models
•   Risk and how to assess it, including methods for specific company risk
•   CAPM, MCAPM, Build Up, WACC and Arbitrage Pricing Theory
•   Excess cash flow “earnings” method (includes case study)

DAY THREE (WEDNESDAY) 8:00am-5:00pm
THE MARKET APPROACH, DISCOUNTS AND PREMIUMS
Discuss the market approach, valuation discounts and premiums. The course addresses relevant theory, applications, best practice methods and controversies through easily understood text, examples and exercises.

OBJECTIVES
•   Gain an understanding of market approach theory, methodologies and applications
•   Calculate discounts/premiums appropriate for various levels of value and valuation methods

HIGHLIGHTS
•   Selecting and presenting guideline public company data (includes case study)
•   Adjustments for comparative purposes
•   Guideline company transaction method and sources of data
•   Pricing and valuation multiples and adjustments for differences between companies
•   Levels of value theory and illustrations
•   Control, marketability and other discounts/premiums
•   Detailed list and discussion of various discount studies
•   Quantitative and qualitative tools for determining and presenting discounts (includes examples)

DAY FOUR (THURSDAY) 8:00am-5:00pm
REPORTS, STANDARDS AND TAX VALUATIONS
Discuss types of reports, valuation standards and tax related valuations. The course addresses relevant theory, applications, best practice methods and controversies through easily understood text, examples and exercises.

OBJECTIVES
•   Gain an understanding of reporting options and content
•   Identify BV organizations and their standards and credentials
•   Apply valuation theory and methods to estate, gift, income tax and family limited partnership valuations

HIGHLIGHTS
•   Types of engagements and reports (includes complete sample report)
•   BV standards and credentials including AICPA, USPAP and IRS business valuation guidelines
•   Relevant regulations and revenue rulings for estate, gift, charitable contribution and income tax valuations (includes revenue ruling compliance checklists)
•   Family limited partnership valuation issues (includes case study)
•   Valuation issues with buy/sell agreements

DAY FIVE (FRIDAY) 8:00am-5:00pm
VALUATION ESSENTIALS CASE STUDY
Based on the Financial Valuation Workbook, co-authored by James R. Hitchner and Michael J. Mard, this session presents a comprehensive case study that includes the engagement, industry and company information; the income and market approaches; and the estimate of value. Through 76 easily understood exercises (including detailed answers) the case study serves as a review of the relevant theory, applications, best practice methods and controversies addressed in the other days. The Valuation Essentials Case Study acts as a “capstone” for the entire Business Valuation School Program.

OBJECTIVE
•   Apply general valuation theory and methodologies to a representative valuation engagement

HIGHLIGHTS
•   The impact of national, local and industry economic outlook
•   Market approach including methods and sources
•   Historical financial analysis of company data with adjustments
•   Correlation of values
•   Ratio analysis
•   Control, minority and marketability
•   Income approach including calculations of WACC and the Capitalized Cash Flow Method
•   Discount case study exercises
•   Controversial issues