Fundamentals of Corporate Valuation

Session 1 - Valuation Overview

• Corporate valuation training begins by introducing stand-alone valuation techniques vs. control-based techniques
• Trading vs. transaction comparables
• DCF valuation, with/ without synergies
• LBO valuation
• Reconciling Equity Value vs. Enterprise Value and the Valuation Bridge

Session 2 - Relative Valuation using Trading and Transaction Comparables

• Trading vs. transaction comparables
• Choosing an appropriate peer group
• Calculating market value and enterprise value
• Normalising for non-recurring items and calculating LTM (EBITDA, EBIT, Net Income)
• LTM vs. forward multiples
• Dealing with Lease Adjustments: US GAAP vs. IFRS
• Calendarisation
• Why EV multiples are preferred to P/E
• Deciding which multiple to use
• Transaction comparables: EV/ LTM EBITDA and Historic Bid Premia

Session 3 - Fundamental ‘Discounted Cash Flow’ Valuation

• The Five Steps to estimating a DCF valuation
• Forecasting Unlevered Free Cashflow from EBIT
• Estimating the WACC and the input assumptions required
• Estimating Beta: Using comparables or a sector index: Unlevering and Relevering beta
• Estimating terminal value (exit multiple vs. perpetuity growth rate)
• Discounting future values to estimate an enterprise value: Mid-period vs. End-of-Period discounting
• Reconciling Enterprise Value to Equity Value
• Sensitivity analysis using data tables
• Sense-checking the forecast ratios and terminal value
• Estimating the DCF to a specific valuation date: discount factors and stub period
• Alternative approach to estimating terminal value based on RoIC and Reinvestment rate
• Estimating a Present Value for synergy cash flows

 Session 4 - LBO Valuation

• This coproatee valuation course give an LBO overview
• Sources & Uses at entry
• Forecasting cash flow available for debt service and debt repayments over the investment period
• Estimating the exit EV and equity value and calculating returns to the equity investor (IRR and money multiple)
• Estimating an LBO valuation based on the required rate of return
• Sensitivity analysis using data tables

After graduating from the University of Cambridge in 1993, Redcliffe's trainer began his career as an auditor at Arthur Andersen. Here, he developed a strong foundation in corporate accounting and financial statement analysis. He later qualified as a Chartered Accountant (ACA) and transitioned into investment banking in the City of London, holding roles at both HSBC and Merrill Lynch.

During his time in London, he held a front-office role advising companies on valuation, financing, acquisitions, foreign exchange, and derivatives. His broad practical experience, combined with a strong passion for sharing knowledge, led him to pursue a career in training. Over the last decade, our corporate valuation course expert has specialised in financial training, delivering across a broad range of subjects, including leveraged buyouts.

His areas of expertise include:

• Accounting
• Financial modelling
• Corporate finance
• Valuation
• Capital markets

He has trained professionals at investment banks, private equity firms, and corporate finance teams globally.

• Learn how to value companies on a fundamental basis, using the discounted cash flow approach.
• Master market-based valuation techniques, trading and transaction comparables analysis, using income statements and asset multiples.
• Know how private equity buyers determine a buyout valuation and the key drivers which determine an appropriate offer price.

• Ideal for finance professionals seeking a practical, structured introduction to company valuation.
• No prior knowledge of valuation techniques is assumed. Though delegates should already be familiar with financial statements and modelling through their work experience or having attended a Financial Statement Analysis and Modelling course.

Redcliffe's corporate valuation course helps delegates working in corporate finance, research or investment banking who are new to valuation techniques. It provides the fundamentals of corporate valuation.

We explore the most common valuation methodologies with reference to a company's fundamental value and how much an acquirer might pay for the business. Included is the explanation and concepts of enterprise value and equity value. Using simple but rigorous exercises.

Finally, the basics of multiple valuation and discounted cash flow valuation are introduced. Exercises are used throughout the session, with a general overview of the most commonly used techniques and how to apply them in practice.