Speaker Biography Travis Harms, CPA/ABV, CFA
|
|
- Alicia Black
- 5 years ago
- Views:
Transcription
1 Speaker Biography Travis Harms, CPA/ABV, CFA Travis W. Harms leads Mercer Capital's Financial Reporting Valuation Group. His practice focuses on providing public and private clients with fair value opinions and related assistance pertaining to goodwill and other intangible assets, stock-based compensation, and illiquid financial assets. Travis is a frequent speaker on fair value accounting topics to audiences of financial executives, auditors, and valuation specialists at professional conferences and other events across the U.S. In addition to his work with clients on financial statement reporting issues, Travis performs valuations used for tax compliance, ESOP compliance, and other purposes for clients in a wide range of industries. Travis is a member of The Appraisal Foundation s working group to address best practices for control premiums, and co-authored the book Business Valuation: An Integrated Theory, Second Edition, with Z. Christopher Mercer, ASA, CFA, ABAR. 1
2 Speaker Biography Ron DiMattia, CPA/ABV, CMA Ron DiMattia founded Corporate Value Partners, Inc. to assist clients with a broad range of valuation, corporate finance and litigation matters. He has significant experience in financial analysis, forecasts/projections, acquisitions, shareholder value measurement and litigation support. He is a sole practitioner and previously was a senior staff member for a regional accounting firm and was a Senior Manager in a Big Four accounting firm s financial advisory services practice. Ron currently serves on the AICPA s ABV Credential Committee and has served on the AICPA s Business Valuations Subcommittee; he was also appointed to the National Accreditation Commission of the AICPA. Additionally, he has served as a member of the AICPA s Governing Council. Ron has been privileged to serve as an instructor for the AICPA ABV Exam Review course as well as introductory valuation courses and the AICPA s National Business Valuation School. 2
3 Learning Objective(s)! Identify several key DCF model inputs! Understand what drives DCF model inputs and how they relate to each other! Learn how to present and interpret DCF model outputs under different scenarios! Evaluate some of the most common biases in assumptions that can undermine cash flow forecasts 3
4 Polling Question! Do you use DCF analysis? Always Most of the time Some of the time Rarely Never 4
5 When to Use DCF or CCF! Use discounted cash flow when: Operations are not in a steady-state Relatively better visibility into the future Relatively more complexity in financial relationships! Use capitalized cash flow when: Operations are in a steady state Relatively poor visibility into the future Financial relationships are relatively straight-forward - Modeling into the future helps capture value implications of management decisions 5
6 Discounted Cash Flows Cash Flow to Invested Capital: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Earnings before Interest & Taxes $1,500 $1,550 $1,602 $1,655 $1,710 $1,767 - Pro Forma Income Taxes (600) (620) (641) (662) (684) (707) = Debt-Free Net Income $900 $930 $961 $993 $1,026 $1,060 + Depreciation & Amortization Capital Expenditures (400) (413) (427) (441) (456) (471) +/- Change in Working Capital (120) (124) (128) (132) (137) (141) = Cash Flow to Total Capital $780 $806 $833 $861 $889 $919 + Terminal Value 10,603 = Total Cash Flows $780 $806 $833 $861 $11,493 Discounting Periods Present Value Factors Present Value of Cash Flows ,521 Indicated Value: Total Capital $9,000 less: Interest-Bearing Debt (3,000) Indicated Value: Equity $6,000 6
7 DCF Nuances! Modeling financial relationships! Integrating assumptions! Sensitivity analyses! Forecasting biases! Over-reliance on models in assessing value 7
8 Modeling Financial Relationships 8
9 What is the first step in developing a financial projection model? 9
10 10
11 Polling Question! Forecast period used: 2-4 years 5 years 6-7 years 7+ years 11
12 Modeling Financial Relationships! Be mindful of modeling financial relationships Unit / volume analysis Store-by-store analysis Fixed and variable costs 12
13 Unit / Volume Analysis! Unit Price and Volume Analysis How much stuff and at what price/margin? In some industries it makes more sense to forecast unit volumes and prepare sensitivity analysis on price. Be careful of product mix! 13
14 Store-by-Store Analysis Year 1 Store 1 Store 2 Store 3 Store 4 Store 5 Total Sales 1,000,000 1,500, ,000 2,000, ,250,000 Cost of goods sold 800,000 1,200, ,000 1,600, ,200,000 Gross profit 200, , , , ,050,000 Operating expense 150, , , , ,000 Operating profit 50,000 50,000 (50,000) 200, ,000 Inventory 270, , , , ,350,000 Fixed assets 250, , , , ,250,000 Other assets 25,000 50,000 15,000 35, ,000 Remember to do store-by-store analysis for retailers. Be careful about allocations from corporate activities 14
15 Fixed Costs! Fixed vs. Variable Costs Is operating leverage real or just a fantasy? Fixed costs often take a step up after a relevant range. Be careful how you forecast fixed costs and margins margins rise as you approach the end of the relevant range, and then fall back after the fixed cost step up 15
16 Polling Question! Can fixed costs take a step down if revenue falls? Always Never It depends 16
17 Margin Matters! The revenue and expense assumptions may be reasonable in isolation, but do they work together? Trends over time Projected margins relative to history Projected margins relative to industry peers Projected margins relative to strategy 17
18 Polling Question! Do you use historical averages to build forecast assumptions? Always Sometimes Never 18
19 Integrating Assumptions 19
20 Integrating Assumptions! Assumptions in a DCF model must be integrated Capital Expenditures & Depreciation Working Capital Other Assets & Liabilities Interest-Bearing Debt & Interest Expense Discounting period EOY vs. mid-year Terminal value (or residual value) assumed growth 20
21 What s Wrong with this Picture? Year 1 Year 2 Year 3 Year 4 Year 5 Sales $5,000,000 $6,000,000 $7,000,000 $8,000,000 $9,000,000 Op g profit 500, , ,000 1,280,000 1,800,000 W/C (100,000) (90,000) (80,000) (70,000) (60,000) Capital Exp. (50,000) (50,000) (50,000) (50,000) (50,000) Depreciation 65,000 65,000 65,000 65,000 65,000 21
22 Terminal Value! Make sure long-term growth estimate makes sense for the client and industry Be careful of biases!! Gordon Growth model! Exit multiple Either is appropriate just be careful how you use it! 22
23 Polling Question! Do you develop terminal values using: Gordon Growth model Exit multiples Combination it depends on the engagement Something else 23
24 Discounted Cash Flows Cash Flow to Invested Capital: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Earnings before Interest & Taxes $1,500 $1,550 $1,602 $1,655 $1,710 $1,767 - Pro Forma Income Taxes (600) (620) (641) (662) (684) (707) = Debt-Free Net Income $900 $930 $961 $993 $1,026 $1,060 + Depreciation & Amortization Capital Expenditures (400) (413) (427) (441) (456) (471) +/- Change in Working Capital (120) (124) (128) (132) (137) (141) = Cash Flow to Total Capital $780 $806 $833 $861 $889 $919 + Terminal Value 10,603 = Total Cash Flows $780 $806 $833 $861 $11,493 Discounting Periods Present Value Factors Present Value of Cash Flows ,521 Indicated Value: Total Capital $9,000 less: Interest-Bearing Debt (3,000) Indicated Value: Equity $6,000 24
25 Discounted Cash Flows Cash Flow to Equity: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Earnings before Interest & Taxes $1,500 $1,550 $1,602 $1,655 $1,710 $1,767 - Interest Expense (300) (310) (320) (331) (342) (353) = Pre-tax Income $1,200 $1,240 $1,281 $1,324 $1,368 $1,414 - Income Taxes (480) (496) (513) (530) (547) (566) = Net Income $720 $744 $769 $794 $821 $848 + Depreciation & Amortization Capital Expenditures (400) (413) (427) (441) (456) (471) +/- Change in Working Capital (120) (124) (128) (132) (137) (141) +/- Change in Interest-Bearing Debt = Cash Flow to Equity $700 $723 $747 $772 $798 $707 + Terminal Value 7,069 = Total Cash Flows $700 $723 $747 $772 $7,867 Discounting Periods Present Value Factors Present Value of Cash Flows ,911 Indicated Value: Equity $6,000 25
26 Polling Question! Do you use: Cash flow to invested capital only Cash flow to equity only Combination it depends 26
27 Sensitivity Analysis 27
28 Sensitivity Analyses! Depends on the client which sensitivities you will focus on! Be mindful of biases when building sensitivity analyses! Common sensitivities: Cost of capital Long-term growth rate Operating profit margin Market prices in commodity-driven industries 28
29 Sensitivity Analysis! Test sensitivity of Market Value of Equity relative to Cost of Equity and Long Term Growth holding all other assumptions constant (dollars in thousands) Growth Cost of Equity 14% 15% 16% 17% 3% 5,957 5,586 5,272 5,002 4% 6,337 5,896 5,528 5,217 5% 6,812 6,276 5,837 5,472 6% 7,422 6,751 6,216 5,780 29
30 Sensitivity Analysis! Test sensitivity of Market Value of Equity relative to Cost of Equity and Operating Margin holding all other assumptions constant (dollars in thousands) Operating Margin Cost of Equity 14% 15% 16% 17% 1% 1,981 1,918 1,865 1,821 2% 6,337 5,896 5,528 5,217 3% 10,694 9,875 9,191 8,613 4% 15,051 13,853 12,854 12,008 30
31 Polling Question! What is most often the critical variable in sensitivity analyses? Sales growth Gross profit margin Operating profit margin Working capital investment Capital expenditures Cost of capital 31
32 Forecasting Biases 32
33 33
34 Forecasting Biases! Common biases Anchoring: over-reliance on a known quantity to estimate an unknown Failure to consider regression to the mean Illusion of understanding and illusion of validity Failure to properly consider trends / over-reliance on averages 34
35 35
36 Forecasting Biases! Common biases Anchoring: over-reliance on a known quantity to estimate an unknown Failure to consider regression to the mean Illusion of understanding and illusion of validity Failure to properly consider trends / over-reliance on averages 36
37 Model Mania 37
38 Over-Reliance on Models in Assessing Value! Spreadsheets can account for only a small portion of economic reality! Valuation specialists are social scientists, not engineers! Think more like a social scientist, and less like an engineer 38
39 Why is the output of the model reasonable? 39
40 40
41 Wrap-Up and Review 41
42 Key Take-Aways! Be aware of your biases! Does the model match the story?! Always make sure your DCF analysis is integrated! Be aware of financial relationships when building forecasts! Check your model with sensitivity analyses! Always remember it is not the model that produces the estimate of value. Informed judgment and experience are crucial 42
43 Digging Deeper Exploring the Nuances of Discounted Cash Flow Analysis Travis W. Harms, CPA/ABV, CFA Mercer Capital Ronald D. DiMattia, CPA/ABV, CMA Corporate Value Partners, Inc
MERCER CAPITAL OIL & GAS QUALIFICATIONS
MERCER CAPITAL OIL & GAS QUALIFICATIONS MERCER CAPITAL Mercer Capital is a national valuation and financial advisory firm. Clients include private and public companies, financial institutions, high-net
More informationUNDERSTANDING THE VALUE OF A START-UP COMPANY.
UNDERSTANDING THE VALUE OF A START-UP COMPANY July 2013 UNDERSTAND THE VALUE OF A START-UP COMPANY Valuation for start-up enterprises can be a tricky proposition. Regardless of industry, start-ups generally
More informationValuing Investments in Start-Ups
Valuing Investments in Start-Ups Travis W. Harms, CFA, CPA/ABV Senior Vice President Mercer Capital harmst@mercercapital.com 901.685.2120 AICPA 2017 Forensic & Valuation Services Conference 1 Topics to
More informationMERCER CAPITAL OILFIELD & RELATED SERVICES
MERCER CAPITAL OILFIELD & RELATED SERVICES MERCER CAPITAL Mercer Capital is a national valuation and financial advisory firm. Clients include private and public companies, financial institutions, high-net
More informationTravis W. Harms, CFA, CPA/ABV
Travis W. Harms, CFA, CPA/ABV harmst@mercercapital.com PROFESSIONAL EXPERIENCE Travis W. Harms leads Mercer Capital s Family Business Advisory Services Group. Travis s practice focuses on providing financial
More informationHealthcare M&A Due Diligence and Financial Reporting
Healthcare M&A Due Diligence and Financial Reporting AICPA National Healthcare Industry Conference Las Vegas, NV November 6, 2014 Presented by: Ronald D. Finkelstein, CPA/ABV MBAF, LLC rfinkelstein@mbafcpa.com
More informationMERCER CAPITAL. Oil & Gas Qualifications
MERCER CAPITAL Oil & Gas Qualifications MERCER CAPITAL Mercer Capital is a national valuation and financial advisory firm. Clients include private and public companies, financial institutions, high-net
More informationFundamental Analysis, B7021, Spring 2016
Fundamental Analysis, B7021, Spring 2016 Course Syllabus This draft: October 21, 2015 I. CONTACT DETAILS Prof. Doron Nissim Email: dn75@columbia.edu Office hours (604 Uris): by appointment II. COURSE DESCRIPTION
More informationRepurchase Liability Basics and the Effect on the Valuation
Repurchase Liability Basics and the Effect on the Valuation March 24, 2017 Owen Schmidt Director of Sales Consulting Principal Laurie-Leigh White Sr. Vice President BVA Group Table of Contents Introduction
More informationEstimating Cash Flows
Estimating Cash Flows From accounts to cashflow Assets Liabilities Existing investments Generate cash flows today include long-lived (fixed) and short-lived (wc) assets Assets in Place Debt Fixed claim
More informationMERCER CAPITAL. Oilfield & Related Services
MERCER CAPITAL Oilfield & Related Services MERCER CAPITAL Mercer Capital is a national valuation and financial advisory firm. Clients include private and public companies, financial institutions, high-net
More informationThe Discount for Lack of Marketability: Quantifying the Risk of Illiquidity
III rd OIV International Business Valuation Conference January 19, 2015 The Discount for Lack of Marketability: Quantifying the Risk of Illiquidity Mark L. Zyla CPA/ABV, CFA, ASA Managing Director Acuitas,
More informationABV Examination Content Specification Outline
ABV Examination Content Specification Outline AICPA ABV Examination Content Specification Outline 1 2017 American Institute of Certified Public Accountants. All rights reserved. AICPA and American Institute
More informationBuy-Sell Agreements for Investment Management Firms
Buy-Sell Agreements for Investment Management Firms An Ounce of Prevention Is Worth a Pound of Cure Matt Crow and Brooks Hamner Mercer Capital April 4, 2017 Why This Matters to You Your buy-sell is essential
More informationTHE NEW TAX LAW S IMPACT ON EXISTING ESOPS, THE FORMATION OF NEW ESOPS, AND YOUR VALUATION
THE NEW TAX LAW S IMPACT ON EXISTING ESOPS, THE FORMATION OF NEW ESOPS, AND YOUR VALUATION Owen Schmidt Director of ESOP Consulting Principal Laurie-Leigh White Partner BVA Group TABLE OF CONTENTS First
More informationMERCER CAPITAL Financial Institutions Group
MERCER CAPITAL Financial Institutions Group MERCER CAPITAL Mercer Capital is a national valuation and financial advisory firm. Clients include private and public companies, financial institutions, high-net
More informationPurchase Price Allocation, Goodwill and Other Intangibles Creation & Asset Write-ups
Purchase Price Allocation, Goodwill and Other Intangibles Creation & Asset Write-ups In this lesson we're going to move into the next stage of our merger model, which is looking at the purchase price allocation
More informationROADMAP FROM CONCEPT TO IPO.
The ENTREPRENEUR S ROADMAP FROM CONCEPT TO IPO www.nyse.com/entrepreneur Download the electronic version of the guide at: www.nyse.com/entrepreneur 38 409A VALUATIONS AND OTHER COMPLEX EQUITY COMPENSATION
More informationTCA Inventories: A Refresher. Bruce E. Ratford, CMA, CMM III
TCA Inventories: A Refresher Bruce E. Ratford, CMA, CMM III 1 PS 3150 It is about accounting It is not about: Financing Budgeting Asset management 2 Implementing PS 3150 Compilation of asset inventories
More informationFinancial & Valuation Modeling Boot Camp
TARGET AUDIENCE Overview 3-day intensive training program where trainees learn financial & valuation modeling in Excel using in a hands-on, case-study approach. The modeling methodologies covered include:
More informationUnderstanding Financial Statements and Their Effects on Enhancing Value
Understanding Financial Statements and Their Effects on Enhancing Value 2017 California/Western States Chapter Conference Todd Poling, Vantage Point Advisors Josh Edwards, Eureka Valuation Advisors Main
More informationPCAOB s Annual Inspections Division Training
Auditors, Valuation Specialists and Fair Value Measurements Mark L. Zyla CPA/ABV, CFA, ASA Acuitas, Inc. Objectives of the Presentation PCAOB s Annual Inspections Division Training March 11, 2010 Trends
More informationSession Number. Date Held. Session Duration. Assignments (to be completed prior to next class session) Content Covered
1 [insert date] Course Introduction Introduction to CMA Credential and Wiley CMAexcel Learning System Section A: External Financial Reporting Decisions Topic 1: Financial Statements Topic 2: Recognition,
More information9/29/2014. Managing the Repurchase Obligation Before it Becomes Unmanageable. Introduction. Topics that will be covered
Managing the Repurchase Obligation Before it Becomes Unmanageable The New England Chapter of The ESOP Association 2014 Annual Conference October 3, 2014 Mystic, Connecticut Tina DiCroce ESOP Economics,
More informationEthics Problems, Bias, Standards Violations & Overreaching in Litigation 2012 Forensic & Valuation Services Conference
Ethics Problems, Bias, Standards Violations & Overreaching in Litigation 2012 Forensic & Valuation Services Conference Presented by: Brad Preber CPA/CFF, CFE and Robert Reilly, CPA/ABV/CFF/CGMA November
More informationA FIDUCIARY'S GUIDE TO SELECTING A FINANCIAL ADVISER AND REVIEWING AN ESOP STOCK VALUATION REPORT
Winter 2006 ESOP Financial Advisory Insights Insights 17 A FIDUCIARY'S GUIDE TO SELECTING A FINANCIAL ADVISER AND REVIEWING AN ESOP STOCK VALUATION REPORT Timothy J. Meinhart This discussion summarizes
More informationAn Introduction to Stock Valuation Brian Donovan, CBV
An Introduction to Stock Valuation Brian Donovan, CBV August 2017 Background: Risk comes from not knowing what you are doing. Warren Buffet Buying stocks without understanding their value is like buying
More informationBusiness Valuation Methodology Survey 2017
Business Valuation Methodology Survey 2017 September 2017 Privileged For limited circulation Contents Foreword 03 Executive summary 04 Detailed survey results 05 The survey report focuses on business valuation
More informationValuation Principles
Valuation Principles The ACG Cup January 15, 2019 36 East 7 th Street Suite 2400 Cincinnati, OH 45202 513.813.4101 www.comstockadvisors.com Nickolas N. Sypniewski nsypniewski@comstockadvisors.com www.comstockadvisors.com
More informationOrganismo Italiano di Valutazione Business Valuation International Conference Control Premiums in Financial Reporting
Organismo Italiano di Valutazione Business Valuation International Conference Control Premiums in Financial Reporting Presented by: Carla G. Glass, CFA, FASA, FRICS October 22, 2012 Disclaimer The views
More informationForecasting Balance Sheets and Cash Flow Statements for DCF Analyses. Joseph Emanuele ASA, CFA, CPA/ABV/CFF October 8, 2017
Forecasting Balance Sheets and Cash Flow Statements for DCF Analyses Joseph Emanuele ASA, CFA, CPA/ABV/CFF October 8, 2017 What we are NOT doing today: We are NOT going to be learning how to prepare prospective
More informationCourse Outline. Project Finance Modelling Course 3 Days
Course Outline Project Finance Modelling Course 3 Days Overview This training course provides the opportunity for delegates to practise and improve their abilities in project finance modelling using Excel.
More informationBasics of Business Valuation. Presented by: Alon Wexler, CPA, CA, CBV Richter Advisory Group Inc.
Basics of Business Valuation Presented by: Alon Wexler, CPA, CA, CBV Richter Advisory Group Inc. 2017 Objective Brief overview of the Basics of Business Valuation There is more to it than 5x EBITDA! 2
More informationGeneral procedure Example: Movie Night base scenario Variations: Movie Night scenarios 2 and 3. What is the relation between NI and CFO?
SESSION 5 Pro forma forecast General procedure Example: Movie Night base scenario Variations: Movie Night scenarios 2 and 3 REVIEW OF SESSION 4 What is the relation between NI and CFO? Between EBITDA and
More informationAdjustments to Financial Statements for
Business Valuation Thought Leadership Adjustments to Financial Statements for ESOP Contribution Expense Frank R. ( Chip ) Brown This article is reprinted, with permission from The Journal of Employee Ownership
More informationNCUA Regulatory Update on ALM
Peter Jensen, Regional Capital Markets Specialist NCUA, Region 4, Division of Special Actions NCUA Regulatory Update on ALM University for Credit Unions September 23, 2014 Agenda Introduction Interest
More informationValuation Principles
Valuation Principles The ACG Cup January 20, 2016 36 East 7 th Street Suite 2400 Cincinnati, OH 45202 513.327.2171 www.comstockadvisors.com Nickolas N. Sypniewski nsypniewski@comstockadvisors.com www.comstockadvisors.com
More informationCourse Overview. Course Description
Course Overview Course Description The Calgary CFA Society s flagship oil and gas financial modeling course, instructed by Wall Street Prep, is being held in February 2009 at SAIT. This course offers participants
More informationFINANCIAL STATEMENT ANALYSIS & RATIO ANALYSIS
FINANCIAL STATEMENT ANALYSIS & RATIO ANALYSIS June 13, 2013 Presented By Mike Ensweiler Director of Business Development Agenda General duties of directors What questions should directors be able to answer
More informationValuation Principles
Valuation Principles The ACG Cup January 16, 2018 36 East 7 th Street Suite 2400 Cincinnati, OH 45202 513.813.4101 www.comstockadvisors.com Nickolas N. Sypniewski nsypniewski@comstockadvisors.com www.comstockadvisors.com
More informationContact Information. Business and Intangible Asset Valuation for Financial Reporting. May 23, CalCPA. Globalview Advisors LLC 1
Business and Intangible Asset Valuation for Financial Reporting May 23, 2013 CalCPA Globalview Advisors LLC 1 Presenter s Raymond Rath, ASA, CFA Managing Director Globalview Advisors LLC 19900 MacArthur
More informationBRINGING IT ALL TOGETHER
BRINGING IT ALL TOGETHER Part of the Finance & Accounting Series Premiere Date: November 19, 2014 1 MEET THE FACULTY J. Richard Claywell, International Association of Consultants Valuators and Analysts
More informationMath for Lawyers: Valuation Theory and Practice 101. December 8, 2011
Math for Lawyers: Valuation Theory and Practice 101 December 8, 2011 Agenda Introduction Presentation Questions and Answers (anonymous) Slides now available on front page of Securities Docket www.securitiesdocket.com
More informationPractical Application of ASC 805 and Best Practices for Financial Reporting Engagements
Practical Application of ASC 805 and Best Practices for Financial Reporting Engagements Nathan DiNatale, CPA/ABV, CVA, ABAR Partner - SC&H Group Nathan has over 23 years of public accounting experience
More informationNACVA National Association of Certified Valuation Analysts. Professional Standards
NACVA National Association of Certified Valuation Analysts Professional Standards These Professional Standards are effective for engagements accepted on or after January 1, 2008 NACVA PROFESSIONAL STANDARDS
More informationGlobal ABV Examination
Accredited in Business Valuation Global ABV Examination content specification outline Effective Aug. 1, 2018 i Valuation Principles Examination This document is nonauthoritative and is included for informational
More informationI. OVERVIEW OF FIRMS. Table of Contents FAIR VALUE MEASUREMENTS AND FINANCIAL REPORTING UPDATE PRESENTATION TO DALLAS CPA SOCIETY.
Table of Contents Overview of Firms 2 ASC 820: Fair Value Measurements and Disclosures 5 FAIR VALUE MEASUREMENTS AND FINANCIAL REPORTING UPDATE PRESENTATION TO DALLAS CPA SOCIETY MAY 4, 2012 ASC 805: Business
More informationBecker CPA Review 2009 Financial 3(B) Update. Financial 3(B) Updates for 2009 Edition Last Updated March 31, 2009
Financial 3(B) Updates for 2009 Edition Last Updated March 31, 2009 SECTION A: TEXT, LECTURE & FLASHCARD ERRATA Item A.1 Page F3(B)-4 SFAS 115 - Investments chart This chart indicates that the cash flows
More informationSeptember 22, Writing a Buy-Sell Agreement that Keeps You Away from Court. By Michael Blake, Arpeggio Advisors
September 22, 2015 Writing a Buy-Sell Agreement that Keeps You Away from Court By Michael Blake, Arpeggio Advisors Buy-sell agreements are agreements that shareholders conclude in order to enable the orderly
More informationValuation of Equity and Investment Decisions. Shyam Sunder, Yale University Amrut Modi School of Management Ahmedabad University January 1, 2015
Valuation of Equity and Investment Decisions Shyam Sunder, Yale University Amrut Modi School of Management Ahmedabad University January 1, 2015 An Overview What is your purpose? What is in your opportunity
More informationASU Recognition and Measurement of Financial Assets and Liabilities. It s Not CECL, But It Could Affect You.
ASU 2016-01 Recognition and Measurement of Financial Assets and Liabilities It s Not CECL, But It Could Affect You www.mercercapital.com You likely are aware of ASU 2016-01, which requires that public
More informationPart 1 Study Unit 10. Cost And Variance Measures. By Ronald Schmidt, CMA, CFM
Part 1 Study Unit 10 Cost And Variance Measures By Ronald Schmidt, CMA, CFM Variance Analysis and overview A budget communicates to employees the organization s operational and strategic objectives Considerations:
More informationLecture 1: Foundation
OPTIONS and FUTURES Lecture 1: Foundation Philip H. Dybvig Washington University in Saint Louis applications big ideas derivatives market players strategy examples Copyright c Philip H. Dybvig 2004 Derivatives
More informationBusiness Valuation v Economic Damages: What are the Differences?
Business Valuation v Economic Damages: What are the Differences? V OIV International Business Valuation Conference January 16, 2017 Nancy Fannon, CPA, ABV, ASA, MCBA Meyers, Harrison & Pia Valuation and
More informationFair Value Accounting for Entities and Intangibles: What you need to know. August 2018
Fair Value Accounting for Entities and Intangibles: What you need to know August 2018 Presenter David Ball, CFA Managing Director Duff & Phelps Valuation Advisory Practice Concentration in TMT Industry
More informationThe Three Approaches to Business Valuation
The Three Approaches to Business Valuation By Anja Bernier, President Efficient Evolutions LLC, Certified Business Appraiser (CBA) and Certified Valuation Analyst (CVA) There are three basic approaches
More informationFamily Law Thought Leadership. Charles A. Wilhoite, CPA
Family Law Thought Leadership The Business Valuation Baker s Dozen : Questions Legal Counsel Should Consider Asking (and the Expert Should Expect to Hear) in Deposition/Cross-Examination And Why Charles
More informationItems impacting the first quarter of fiscal 2011 consisted of the following:
Non-GAAP Financial Information In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States ( GAAP ), the Company also
More informationAMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ORAL STATEMENT PRESENTED TO
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS ORAL STATEMENT PRESENTED TO Internal Revenue Service PUBLIC HEARING: Proposed Regulations Regarding the Valuation of Interests in Corporations and Partnerships
More informationNACVA. National Association of Certified Valuation Analysts. Professional Standards
NACVA National Association of Certified Valuation Analysts Professional Standards Effective May 31, 2002 NACVA PROFESSIONAL STANDARDS Table of Contents Preamble... 4 General and Ethical Standards... 4
More informationVALUATION BOOTCAMP Presented by:
VALUATION BOOTCAMP Presented by: David Guadagnoli, Sullivan & Worcester LLP Chris Mellen, Valuation Research Corporation SEMINAR OVERVIEW This session is designed to demystify the process of valuation
More informationContact Information. Valuation of Industrial Intellectual Property. 9 th ICVPME Conference, Tokyo, Japan. October 28, 2015
1 Valuation of Industrial Intellectual Property 9 th ICVPME Conference, Tokyo, Japan October 28, 2015 Presenter s Raymond Rath, ASA, CFA Managing Director Globalview Advisors LLC 19900 MacArthur Boulevard,
More informationChapter Fourteen Lecture Notes Financial Statement Analysis
Chapter Fourteen Lecture Notes Financial Statement Analysis 1 Financial Analysis Financial analysis uses the financial statements and other sources of information to: - help managers and outsiders understand
More informationWHERE S THE VALUE IN PHYSICIAN PRACTICE VALUATIONS?
WHERE S THE VALUE IN PHYSICIAN PRACTICE VALUATIONS? By Michael Ueng, CPA/ABV, ASA, Manger Coker Group A sustained trend of physicians leaving private practice and entering employment arrangements with
More informationRITE AID CORPORATION AND SUBSIDIARIES. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited)
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 3, 2018 ASSETS Current assets: Cash and cash equivalents $ 132,468 $ 447,334 Accounts receivable, net 2,039,605 1,869,100 Inventories, net of LIFO
More informationFiscal Q Revenue Recognition Adoption. November 13, 2018
Fiscal Q3 2018 Revenue Recognition Adoption November 13, 2018 Forward-looking Statements Certain statements contained herein constitute forward-looking statements as defined in the Private Securities Litigation
More informationRITE AID CORPORATION AND SUBSIDIARIES. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited)
CONSOLIDATED BALANCE SHEETS (Dollars in thousands) March 3, 2018 ASSETS Current assets: Cash and cash equivalents $ 410,043 $ 447,334 Accounts receivable, net 1,717,830 1,869,100 Inventories, net of LIFO
More informationJune 20, 2016 Via
Via email: commentletters@ivsc.org 1 King Street London, EC2V 8AU United Kingdom Re: IVS 210: Intangible Assets Exposure Draft Comments from Globalview Advisors LLC Dear IVSC Representatives: The valuation
More informationAn Introduction to Business Valuation. By Garth M. Tebay, CPA, CVA, CM&AA
An Introduction to Business Valuation By Garth M. Tebay, CPA, CVA, CM&AA Welcome to the challenging world of business valuation. The key to success in this arena is knowledge. When valuing a closely held
More informationfor Closely Held and Family Business Owners Z. Christopher Mercer, ASA, CFA, ABAR
for Closely Held and Family Business Owners Do You Know that Your Buy-Sell Agreement Will Work As Expected? Buy-sell agreements are not merely legal documents to be signed and forgotten. How they operate
More informationCLIENT EXIT STRATEGIES AND THEIR IMPACT ON BUSINESS VALUE
1 CLIENT EXIT STRATEGIES AND THEIR IMPACT ON BUSINESS VALUE CPA Leadership Webinar October 21, 2011 Presented by: Chris Mellen Delphi Valuation Advisors, Inc. Agenda 2 Seminar Overview What is Exit Planning?
More informationMARKET-BASED VALUATION: PRICE MULTIPLES
MARKET-BASED VALUATION: PRICE MULTIPLES Introduction Price multiples are ratios of a stock s market price to some measure of value per share. A price multiple summarizes in a single number a valuation
More informationIslamic University of Gaza Advanced Financial Management Dr. Fares Abu Mouamer Final Exam Sat.30/1/ pm
Islamic University of Gaza Advanced Financial Management Dr. Fares Abu Mouamer Final Exam Sat.30/1/2008 3 pm 1. Which of the following statements is most correct? a. A risk averse investor will seek to
More informationFocus Financial Partners. Q3 and Year-To-Date 2018 Earnings Release Supplement November 2018
Focus Financial Partners Q3 and Year-To-Date 2018 Earnings Release Supplement November 2018 Disclaimer Special Note Regarding Forward-Looking Statements Some of the information in this presentation may
More informationJanuary 20, for. Acme Distribution. Prepared for: Tim Mills. Prepared by: Tom MacPherson
CALCULATION OF VALUE January 20, 2016 for Acme Distribution 182 First Avenue, Charlotte, NC Prepared for: Tim Mills Prepared by: Tom MacPherson Summit Acquisitions Group, LLC 4200 Settler Heights Drive,
More informationFrequently Asked Questions:
Frequently Asked Questions: CECL for Community Banks and Credit Unions What is the current expected credit loss (CECL)? The current expected credit loss (CECL) is a new GAAP accounting standard that will
More informationI Don t Buy It. The Effect of Buy-Sell Agreements in Divorce AICPA/AAML National Conference on Divorce May 20, 2016
I Don t Buy It The Effect of Buy-Sell Agreements in Divorce Z. Christopher Mercer, FASA, CFA, ABAR MERCER CAPITAL 901.685.2120 mercerc@mercercapital.com www.mercercapital.com www.chrismercer.net 2016 AICPA/AAML
More informationChapter 12: Selling and Buying a Business: Introduction
Chapter 12: Selling and Buying a Business: Introduction Most sellers know little about the relationship between cash flow and value. When earnings are down, the business value falls along with it. If earnings
More informationReal Options. Katharina Lewellen Finance Theory II April 28, 2003
Real Options Katharina Lewellen Finance Theory II April 28, 2003 Real options Managers have many options to adapt and revise decisions in response to unexpected developments. Such flexibility is clearly
More informationThe 400 Investment Banking Interview Questions & Answers You Need to Know
The 400 Investment Banking Interview Questions & Answers You Need to Know A Production Copyright 2008 2011 Capital Capable Media LLC. All Rights Reserved. Notice of Rights No part of this book may be reproduced
More information01 Introduction to Financial Statements Acctg 102
Introduction to Financial s Describe the financial reporting environment and explain the accounting assumptions, principles, and qualitative characteristics underlying financial statements. Describe the
More informationUniversity of Victoria. Economics 325 Public Economics SOLUTIONS
University of Victoria Economics 325 Public Economics SOLUTIONS Martin Farnham Problem Set #5 Note: Answer each question as clearly and concisely as possible. Use of diagrams, where appropriate, is strongly
More informationKey Business Ratios v 2.0 Course Transcript Presented by: TeachUcomp, Inc.
Key Business Ratios v 2.0 Course Transcript Presented by: TeachUcomp, Inc. Course Introduction Welcome to Key Business Ratios, a presentation of TeachUcomp, Inc. This course examines key ratios used to
More informationRate & Flow. An Alternative Approach to Determining Active/Passive Appreciation in Marital Dissolutions.
BUSINESS VALUATION & FINANCIAL ADVISORY SERVICES Rate & Flow An Alternative Approach to Determining Active/Passive Appreciation in Marital Dissolutions www.mercercapital.com Rate & Flow An Alternative
More informationANALYZING POTENTIAL OWNERSHIP TRANSITION OPTIONS UTILIZING DEFERRED COMPENSATION ARRANGEMENTS
ANALYZING POTENTIAL OWNERSHIP TRANSITION OPTIONS UTILIZING DEFERRED COMPENSATION ARRANGEMENTS by Ronald J. Adams, CPA, CVA, ABV, CBA, CFF, FVS, CGMA Many smaller companies want to share ownership with
More informationTHE ESOP ADVANTAGE. ESOP Midwest Conference September 11-12, 2014 Chicago Oak Brook Hills Resort Oak Brook, IL
THE ESOP ADVANTAGE ESOP Midwest Conference September 11-12, 2014 Chicago Oak Brook Hills Resort Oak Brook, IL Brian Hector, Partner Morgan, Lewis & Bockius LLP 77 West Wacker Drive Chicago, IL 60601 312.324.1160
More informationMassMutual Business Owner Perspectives Study
A Guide for Business Owners MassMutual Business Owner Perspectives Study 2011 insights in an uncertain economy Contents 2 Start-up stage Reasons for owning a business Sources of business financing Views
More informationCOPYRIGHTED MATERIAL. The Very Basics of Value. Discounted Cash Flow and the Gordon Model: CHAPTER 1 INTRODUCTION COMMON QUESTIONS
INTRODUCTION CHAPTER 1 Discounted Cash Flow and the Gordon Model: The Very Basics of Value We begin by focusing on The Very Basics of Value. This subtitle is intentional because our purpose here is to
More informationFinancial Analyst Training Programme 10 Days
Financial Analyst Training Programme 10 Days Delegate Profile: This course is targeted at delegates who are new to banking and finance and provides a comprehensive overview of financial reporting, financial
More informationThe Basics of Cap Tables
The Basics of Cap Tables September 14, 2016 Trevor Chaplick, Partner, Greenberg Traurig Support by: Founding Members: Education Partners: Use chat to submit questions Yes, you ll get the slides We re recorded,
More informationFINC 664 Business Analysis Using Financial Statements. What will we cover this week? Forecasting. FINC 664 week 3 1. Week 3 Forecasting
FINC 664 Business Analysis Using Financial Statements Week 3 Forecasting Michael D. Kinsman, Ph.D. FINC 664 week 3 1 What will we cover this week? This week, we will discuss the single most important topic
More informationIMPORTANT INFORMATION: This study guide contains important information about your module.
217 University of South Africa All rights reserved Printed and published by the University of South Africa Muckleneuk, Pretoria INV371/1/218 758224 IMPORTANT INFORMATION: This study guide contains important
More informationAdvanced Company Analysis Valuation & Financial Modelling. 5-9 March 2017 Manama, Bahrain. euromoneylearningsolutions.
Advanced Company Analysis Valuation & Financial Modelling 5-9 March 2017 Manama, Bahrain euromoneylearningsolutions.com/learnmore Advanced Company Analysis Valuation & Financial Modelling Accelerate your
More informationDual Multi-Period Excess Earnings in the Valuation of Intangibles
Dual Multi-Period Excess Earnings in the Valuation of Intangibles October 2013 Contributing AUTHORS: Randie Dial Partner CliftonLarsonAllen LLP Carol Lewis Partner BKD, LLP Michael Massey Partner Moss
More informationADVANCED FINANCIAL, Evaluation and Budgeting. H.H. Sheik Sultan Tower (0) Floor Corniche Street Abu Dhabi U.A.E
ADVANCED FINANCIAL, Evaluation and Budgeting H.H. Sheik Sultan Tower (0) Floor Corniche Street Abu Dhabi U.A.E www.ictd.ae ictd@ictd.ae Course Introduction: For any organization to be successful it needs
More informationBrewing Value. Stepping Back. Inside this Article
Brewing Value Stepping Back You ve poured pure passion into your project. You ve established a loyal customer base, brand recognition, strong distribution channels and sustained profitability. Have you
More informationOne of the major applications of Equity Valuation is the Private companies valuation. Private companies valuation can be applied:
One of the major applications of Equity Valuation is the Private companies valuation. Private companies valuation can be applied: To value a Start up operations of Public companies. To estimate a value
More informationIntroduction... 4 Cash vs Accrual Components of the Balance Sheet How to Get a Snapshot View with Balance Sheet Accounts Ratios...
TABLE OF CONTENTS Introduction... 4 Cash vs Accrual... 5 Components of the Balance Sheet... 6 How to Get a Snapshot View with Balance Sheet Accounts... 7 Ratios... 8 Entrepreneurial Finance: Bonus Ratios
More informationAttachment 2: Example key audit matter wording
Attachment 2: Example key audit matter wording Note that the following example does not represent "pro-forma" wording and that in this example scenario we illustrate a risk over the pension scheme membership
More informationJournal of Case Studies November 2015, Vol. 33, No. 2, p
Journal of Case Studies November 2015, Vol. 33, No. 2, p. 87-94 Accounting for Leases: Operating or Capital Does It Really Matter? Karen Foust, Tulane University Christine Smith, Tulane University Beauregard
More information