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Advanced Business Valuations

Learn advanced skills from recent deal case studies with practical exercises involving problem areas

Stunning view of the London's tallest building, against a clear blue sky

A one-day course presented over two half-days in a virtual class.

In-house pricing available – often more cost-effective for teams of 10+
pdf Download:   Course Outline

  • Apply advanced valuation methods to assess complex transactions more effectively
  • Refine modelling assumptions and value drivers to strengthen analytical credibility
  • Refine your valuation judgement through the use of practical case studies

Part One

Advanced Discounted Cash Flow Valuation

  • Advanced Business Valuations begins by recognising the difference between price and valuation
  • Applications – modelling Capex flows and working capital movements:
    • Understanding the linkage between reinvestment rate, growth and risk
  • Fade rates on long-term cash flows
  • Problems calculating terminal value and long-term growth rates:
    • alternatives to the classic terminal value perpetuity
  • Estimating asset life
  • Evaluating the stable growth period
  • Handling research expenditure problems and operating lease payments:
    • Should we treat R&D as long-term CAPEX?
    • Capitalising lease payments
  • Effective and actual tax rates
  • The concept of normalised earnings flows to avoid abnormal cash flow patterns
  • Using multi-period terminal value models

Weighted Average Cost of Capital (WACC) and the Discount Rate

  • Advanced valuation includes the review of the capital asset pricing model (CAPM):
    • The drawbacks of using the model
  • How to derive equity risk premiums in different countries
  • How betas are derived: regressing company and market returns
  • A bottom-up method of calculating beta reflecting business mix and leverage:
    • Deleveraging betas for private company use
  • Which beta to choose for company valuation?
  • Problems with CAPM – is it really still a valid concept?
  • Alternatives to CAPM
  • Market cost of risky debt
  • WACC calculation
  • Optimal capital structure and gearing risk
  • Is WACC dead, given the capital-raising ability of modern firms?
  • Case study example of corporate valuation using the DCF technique

Part Two

Analysing an M&A Business Valuation Case Study

  • Part 2 of this advanced valuation course evaluates an acquisition target's valuation
  • Use of selected valuation techniques:
    • What synergies are possible?
    • When should synergy be considered?
    • Use of control premiums
  • Comparison of valuation results using DCF and relative price multiples
  • Understanding the value drivers of the company and potential synergies
  • Comparing the pre-bid price with the actual price paid
  • Case study example of an M&A transaction 

Using EVA and CFROI-Based Techniques

  • Correlation to the DCF model
  • Calculation of NOPAT and capital
  • Typical adjustments for EVA calculation
  • Understanding the MICAP (market-implied competitive advantage period) concept
  • MVA as a discounted EVA concept
  • Cashflow return on investment (CFROI) – the Holt Approach
  • Comparison of DCF, EVA and CFROI as valuation methodologies 

Real Option Valuation Techniques

  • Advanced business valuations cover the principle of arbitrage in deriving option-based pricing
  • Using binomial option models
  • Simplifying options analysis using the Black-Scholes model:
    • Problems using this model for valuation
  • Applications of real option business valuation models: technology, patents, oil and gas, biotech, etc.
  • Problems using real option models
  • Case study example of using real options in company valuation

Advanced Business Valuations at Redcliffe Training is delivered by the Managing Director of an international advisory firm specialising in business valuation and development services for the corporate, banking, and finance sectors, which he has owned for 17 years. He combines extensive practical experience with deep expertise in corporate and structured finance across global financial markets.

He is a Visiting Fellow in the M&A department and Programme Director of Executive Development at Sir John Cass Business School, London. He is also a member of the Visiting Faculty at Fuqua Business School.

This specialist has worked as an advisor to the UK’s Overseas Development Administration, alongside EU PHARE and TACIS programmes across Europe and Russia.

His main areas of expertise are corporate finance, M&A, corporate analysis, structured finance, asset securitisation, risk management, advanced valuation, corporate credit processes, project finance and treasury management. He advises global corporate and banking clients in these areas, serving as an Expert Witness for London law firms.

This trainer's extensive list of global clients covers European, Middle East, African and Asian markets. He works extensively with large corporates, private equity firms, private investors, and public sector organisations such as the NHS and major law firms. He delivers business valuation advisory and development services either through relevant departments or directly to senior management.

As a well-known figure of various training and development companies in Europe, he provides regular seminars across the world on his specialist topic areas.

This advanced valuation course leader was previously MD of Union Plc, a London merchant bank and worked with leading global investment banks. He left Union Plc in 1996 to establish his own international advisory company.

The list of financial institutions and corporates this specialist has worked with over recent years is extensive and includes - Allied Irish Bank, Alpha Bank, Bank of America Merrill Lynch, Bank of China, Barclays, Bayern LB, BT plc, Citibank, China Construction Bank, Credit Agricole, Credit Suisse, Danone, DECC, Deloitte, Dexia, Emirates Bank, E&Y, Euler Hermes, First Gulf Bank, FSA London, Garanti Bank, HBOS, Hohhot Bank Mongolia, HSBC, HVB, Iccrea Banca, Intesa SanPaolo, Central Bank of Ireland, KPMG, L’Oreal, Malta FSA, Mongolian Stock Exchange, Morgan Stanley, Mubabdala, NHS and many others.

The following objectives are covered throughout this advanced valuation course at Redcliffe Training:
  • Understanding the importance of differentiating price and value
  • The ability to select an appropriate valuation methodology to suit the purpose
  • Create a discounted cash flow model for a corporate entity
  • Value a corporate entity using a comparative analysis
  • Confidently discuss the inherent problems within valuation theory with a client
  • Applying valuation models to different sectors
  • Valuing start-up companies and early-stage development valuation methods
  • Increase assurance in discussing valuation models and approaches

In today’s environment, valuations are increasingly debated. Uncertainty and volatility in future cash flows widen the gap between buyer and seller expectations.

The valuation challenge is compounded by misconceptions around price versus value, whilst models clarify the difference between what is paid for an asset and the future value it may deliver.

Our advanced valuation course takes business valuation techniques much further than introductory sessions, considering essential contemporary techniques. This includes M&A methods application, understanding EVA, the application of CFROI and the use of real options in business valuation analysis.

Case studies from recent deals are included, as are practical exercises involving problem areas. Advanced Business Valuations include critiques of conventional techniques and consider suitable, deployable alternatives in differing circumstances. Participants are required to have a laptop and will be provided with Excel models for use during training.

  • There was a good use of examples throughout.
  • This course was perfect.
  • Excellent instructor, strong course setup with just the right amount of details for an advanced course, overall excellent and efficient time use.
  • The instructor was extremely knowledgeable and always willing to engage with you, answering very specific questions. 
  • This course provides a more in-depth approach to valuation methods.
  • John was a really interesting tutor, with a lot of knowledge about real-life examples he used in his teaching.
  • I wanted to refresh and expand my knowledge of valuation. I liked the fact that the trainer took our level of expertise into account and didn’t dwell too much on the basics, so that more time could be devoted to the more challenging topics and practical examples.
Number of places:

£ 1390.00

Discounts available:

  • 2 places at 20% less
  • 3 places at 30% less
  • 4+ places at 40% less
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