Course Overview:

This seminar takes valuation techniques much further than the introductory course and considers important contemporary techniques including EVA, the valuation of cash flows in different situations and the application of the techniques in mergers and acquisitions.

Case studies from recent deals are included as are practical exercises involving problem areas in valuation.

The seminar also includes critiques of the conventional techniques and considers suitable alternatives to be deployed in differing circumstances.

Course Content:

Advanced Discounted Cashflow Valuation

Ø       Applications – modelling capex flows and working capital movements

Ø       Fade rates on long term cashflows

Ø       Problems with calculating terminal value and long term growth rates

Ø       Estimating asset life

Ø       Evaluating the stable growth period

Ø       Handling problems of research expenditure and operating lease payments

Ø       Effective and actual tax rates

Ø       The concept of normalised earnings flows to avoid abnormal cashflow patterns

Ø       Using multi period terminal value models

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

Ø       Review of capital asset pricing model (CAPM)

Ø       How to derive equity risk premiums in different countries

Ø       How betas are derived – regressing company and market returns

Ø       A bottom-up method of calculating beta reflecting business mix and leverage

Ø       Which beta to choose for company valuation?

Ø       Problems with CAPM – is it really still a valid concept?

Ø       Alternatives to CAPM

Ø       Market cost of risky debt

Ø       WACC calculation

Ø       Optimal capital structure and gearing risk

Ø       Is WACC dead given the capital raising ability of modern firms?

Analysing an M&A Valuation Case

Ø       Evaluation of an acquisition target valuation

Ø       Use of selected valuation techniques

Ø       Comparison of valuation results using DCF and relative price multiples

Ø       Understanding the value drivers of the company and the potential synergies

Ø       Comparing the pre-bid price with the actual price paid

Using EVA and CFROI Based Techniques

Ø       Correlation to DCF model

Ø       Calculation of NOPAT and capital

Ø       Typical adjustments for EVA calculation

Ø       Understanding the MICAP (market implied competitive advantage period) concept

Ø       MVA as a discounted EVA concept

Ø       Cashflow return on investment (CFROI) – the Holt Approach

Comparison of DCF, EVA and CFROI as valuation methodologies

Times

09.30-17.00

Cost

£675 + VAT (£793,13)

Solicitors Regulation Authority (SRA) CPD Hours

6

Training Courses in Banking and Corporate Finance

Redcliffe is a banking and corporate finance training company which specialises in the delivery of bespoke courses to the financial community. It is run by the trainers themselves, all of whom have many years of practical experience at senior levels.

Our programmes are delivered both on an open basis in the City of London and also on an in-house basis for investment banks, stockbrokers, corporate financial advisers, accountants, lawyers and corporates. Redcliffe has a very prestigious client base and during the past two years it has delivered in-house seminars to many leading financial institutions and professional advisers. During 2007 and 2008 almost 3,500 executives attended Redcliffe's open courses. In 2009 Redcliffe will also present some of its courses in Manchester.

The topics that we cover include all areas of corporate finance (including mergers and acquisitions, buy-outs, debt finance, restructuring, valuation, modelling and regulation), banking (including treasury products, risk management and trade finance), project finance (including PPP / PFI), accounts topics, tax and property (including REITS and sale and leaseback).

Details of over 130 courses which Redcliffe can present can be found under Courses and Dates on our website. Most of these are presented on a public basis and all of them may be presented in-house to the client's specification.