Business Valuations Intermediate Online Workshop

Beyond the basics of SME valuation methodology 

Upskill beyond basic business valuations
Case study approach to the key valuation challenges
Practical & real-world application

A Live Instructor Led Workshop

So, you’ve got a bit of valuations knowledge and might have completed a few valuations. Were you confident with the outcomes and are you sure your approach covered all of the issues?

The Business Valuations Intermediate Workshop focuses on the typical SME valuation issues. Using a case study approach, we look at a typical earnings based valuation and then pull it apart. From working out the capitalisation rate, the maintainable earnings, identifying surplus assets, differentiating between equity & enterprise value, assessing minority discounts or control premiums, valuing different share classes and considering franking credits and tax losses – no stone is left unturned. And, we provide sample documentation for you to follow.

We also identify common circumstances where other valuation methods should be considered.

Presented by Greg Hayes, author of A Practical Guide to Business Valuations for SMEs (Wolters Kluwer), these hands-on sessions will assist you to build your valuation expertise and experience. Best for accountants and advisers with the basics of valuation knowledge who are seeking to upskill.

Knowledge Shop members, register through the portal for the discounted rate
(new portal | retiring portal)

Total 4.5 CPD Hours (est.)

Details

Recorded: 19, 26 February & 4 March 2024

Terms & conditions: All registrations to Knowledge Shop events are subject to our terms and conditions which include a cancellation policy. No refunds are provided for cancellations received 1 day prior to the webinar. No credits are available less than 2 hours prior to the event under any circumstances.

*Office Registrations. Maximum 5 participants per firm (must have same email domain). The PD points for all attendees will be recognised and links will be provided to all attendees.

What we cover

The sessions in detail:

1

Session 1: Earnings based valuations – calculating maintainable earnings & how to arrive at the capitalisation rate

February 19, 2024

The majority of SME valuations are likely to be earnings-based valuations. The key to getting these valuations right is arriving at an appropriate maintainable earnings figure and assessing the risk profile of the business to arrive at a supportable capitalisation rate. Using a case study approach, we work through these two areas using a process designed to produce a reliable outcome.

  • The process to move from net profit to maintainable earnings
  • How to regularise and normalise earnings
  • 3 methods to arrive at a capitalisation rate
  • How to test outcomes for reasonableness
  • Applying benchmarks to arrive at a capitalisation rate
  • Assessing for the existence of surplus assets 
3

Session 3: Equity valuations – when the valuation of the business is not enough

March 4, 2024

Equity valuations will often require additional valuation procedures to produce a complete valuation outcome. This can be caused by the existence of different share classes on issue, tax losses in the business, or surplus franking credits. This session will help you to identify where additional work is required and the valuation procedures that you will need to complete.

  • How to value different share classes
  • When share class valuations are likely to be required
  • The danger of ignoring share class values
  • Advice you can provide to clients now to avoid major problems in the future
  • Valuation of tax losses
  • Valuing franking credits 
2

Session 2: Differentiating between enterprise & equity valuations, and how to apply minority discounts or control premiums

February 26, 2024

Every valuation will be either enterprise or equity based. This session focuses on how to differentiate between the two. We look at when to apply each approach, the differences in work procedures, and the matters that need to be covered in your valuation report. For equity valuations we also look at when you should consider minority discounts and control premiums.

  • Differentiating between enterprise and equity valuations
  • When to use each approach and how to calculate the value
  • When to apply minority discounts and calculating the discount
  • When to apply a control premium and calculating the premium
  • Circumstances where an earnings based approach may not work
  • Documentation requirements to support your position

Our presenter

Director, Hayes Knight

Greg Hayes

Greg Hayes, Director Hayes KnightGreg is a Director of Hayes Knight in Sydney and the author of A Practical Guide to Business Valuations for SMEs (Wolters Kluwer).

He brings a wealth of practical experience to this one day training program and will provide you with the knowledge and tools to assist you.

Day to day, Greg heads Hayes Knight’s specialist corporate finance team in Sydney, assisting clients with a myriad of tax, structuring and valuation issues. He has completed hundreds of business valuations and been called on as an expert witness in valuation cases.

A familiar face on the training circuit, Greg is singled out for his practical approach and ability to make complex issues understandable. He frequently develops and presents training programs on tax, superannuation, practice management, and specialist consulting topics.