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.
Review Questions: Business Valuations - Approaches and Methods to arrive at Fair Market Value
FINAL EXAM: Business Valuations - Approaches and Methods to arrive at Fair Market Value
Illumeo, incorporated in 2009, is revolutionizing the hide-bound world of corporate learning. Illumeo works with corporate professionals and organizations of all sizes to build the skills and capabilities that help everyone be an expert at their job.
Based in Silicon Valley, CA, Illumeo serves thousands of corporations and corporate professionals across Finance, Accounting, Human Resources, Sales and Marketing. The platform offers assessments, industry-benchmarked competency analyses, hundreds of expert-developed courses, collaborative tools, and the ability for companies to self-publish internal courses that promote institutional knowledge retention and dissemination.
Illumeo is the place for expertise management and we are dedicated to the proposition that everyone can be an expert at their job.
Roger is a successful entrepreneur who has created several businesses from the ground up, with focus on the healthcare industry. Since the late 1980s, he has focused on management and leadership of day-to-day operations, sales and marketing, financial performance and customer service, giving him the skills to run an effective business. His key to success is surrounding himself with other accomplished individuals and learning from their experiences. Throughout his career, he has not only focused on clients, but employees as well. Roger believes creating an environment that motivates people to work and building strong teams is essential in any business.
Roger applies his knowledge and experience to developing a product that delivers results to business owners. Prior to his CEO role at Fiscal Advantage, he was president at ExitCare in Woodbury, Minn., for 14 years, growing a software start-up to over $10 million in revenue. Roger has also taught entrepreneurship and small business management as an adjunct professor at University of Northwestern – St. Paul. He received his MBA in marketing and finance from the University of Michigan.