Business Valuation Basics In 49 Minutes

For Business Owners Who Want to Use Business Valuation Knowledge to Increase the Value of Their Businesses

What you'll learn

• How the research nature of a valuation and the analysis of the six fundamental areas provide the required insight into future financial performance.

• How grasping the basic terminology, concepts, and function of valuation processes will improve your approach to various management tasks.

• Why is an understanding of fundamental valuation approaches and methods required basic training for all business owners.

• Which considerations to make to identify and improve the six primary value drivers so you can make consistent value-enhancing decisions.

• What specific risks can and should be managed to improve prospective buyers’ assessment of your business.

• How to professionally estimate, effectively track, and manage the relative changes in business value for known time horizons.

• How to become ready and more confident in consequential interactions with financial and legal advisors.

• How to project and analyze simple, future scenarios to aim you at your financial and estate planning goals.

Requirements

An understanding of business management, finances, and accounting will be helpful, but is not required.

Description

Unleash the multiple benefits of making critical business decisions with less risk to significantly increase the rewards of business ownership.This on-target, fast-paced, course directly answers the key questions, every business owner develops as they carefully address the value of their business.There are some shocking statistics that business owners do not often think about! Studies show that over 50% of business owners do not know the value of their business and 90% of business owners do not formally or informally manage the value of their business. They often wait until it is too late to impact the value of their business and are disappointed in transaction results.Since most business owners have over 85% of their net worth tied up in their business it is clearly important to become familiar with the foundation principles of value determination and to learn how to make them work for you. This course does just that! It provides the required new knowledge and gives you the basic tools to put that knowledge to work for you in your business.Your familiarity with valuation analysis and the underlying procedures can be used to develop your business so it is easier to manage “today” and is positioned to increase in value “tomorrow”. You will learn how your management can apply the powerful principles in the "Gordon Growth Model" to increase the value of your business. By learning how to manage with more confidence and less stress business owners will find it easier to reach their personal financial goals.This course is not intended to “make you a trained business valuator”. Rather the sessions and the related materials provided will give you the understanding to communicate more effectively with your advisors and to focus on the business drivers and related trends that ultimately will control the value of your business. A systematic approach to how you improve the value of your business will make a massive financial difference. The basic valuation knowledge in this course will position you to take the steps to do exactly that for you and your family.

Overview

Section 1: Course Introduction

Lecture 1 Course Introduction

Section 2: Valuation Definitions

Lecture 2 Valuation Definitions

Section 3: A Research Project

Lecture 3 A Research Project

Section 4: In Depth Analysis

Lecture 4 In Depth Analysis

Section 5: Basic Valuation Concepts

Lecture 5 Basic Valuation Concepts

Section 6: Normalizing Accounting

Lecture 6 Normalizing Accounting

Section 7: Asset Approach: Example Business

Lecture 7 Asset Approach: Example Business

Section 8: Risk/Reward

Lecture 8 Risk/Reward

Section 9: Income Approach: Gordon Growth Model

Lecture 9 Income Approach: Gordon Growth Model

Section 10: Market Approach: Multiple of Revenue

Lecture 10 Market Approach: Multiple of Revenue

Section 11: Valuation Conclusions

Lecture 11 Valuation Conclusions

Lecture 12 Comment on Discounted Cash Flow Method (DCF)

Section 12: Summary Thoughts

Lecture 13 Summary Thoughts

Section 13: About the Course Creator

Lecture 14 About the Course Creator

Business owners of privately held businesses who want to better understand and use business valuation information to increase the value of their businesses.