BUSINESS VALUATION

Introductory course of the main methods to determine a business value. Criteria, methods and analyzes are treated in relation to each particular case. The aim of the course is to understand basic concepts regarding the value and the acquisition of theoretical and practical knowledge for the proper methodology to be followed for the implementation of model from the different that are available, to determine the commercial value of a company, always bearing in mind the specific characteristics of and the reason for which is intended. Furthermore , reference is made for the interconnection of enterprise value with its strategic goals and highlights its importance as far as the effective company's operation in the long term.

Objectives

Upon successful completion of this course the student will be able to: Know the different definitions of the value of enterprises with emphasis on the economic or commercial value and understand the range of fluctuation of depending on the bargaining power of the parties involved and the intended synergies. Have THE knowledge of different valuation models and how they are used to determine the value. Be able to discern the reasons why different models used in different cases. Analyze and reformulate the financial statements in order to highlight necessary data for the information evaluating. To distinguishe the profit flows from the cash flows and utilize basic information of business plans for the training envisaged financial statements. Analyzes and calculates the cost of funding sources applying appropriate models . Know the main chapters and their contents in a valuation study.

Prerequisites

No prerequisites

Syllabus

Introduction to business valuation . Method of net assets position. Asset and Liabilities Accounts. Exercise of net assets position. Method of capitalized operating profits. Annuity method Method of economic value added. Exercise in economic value added. Discounted cash flow. Exercise in Method discounted cash flow. Method of market multipliers. Discount rate WACC and CAPM model. Budgeted financial statements. Exercises with solutions.