Business Valuation and Due Diligence

What You Will Learn

• 1 Understand the foundations of business valuation, including its purpose, users, and the principles that ensure credible and defensible estimates of financial worth.
• 2 Learn the major valuation approaches, including income, market, and asset-based methods, and when to apply each.
• 3 Explore financial statement analysis, including normalization, common-sizing, ratio analysis, and quality of earnings for valuation purposes.
• 4 Develop cash flow forecasting and modeling techniques, including projections, scenario analysis, and terminal value calculations.
• 5 Understand the components of the cost of capital, including equity, debt, and weighted average calculations, and how to apply them in discounting.
• 6 Apply the market approach using comparable company analysis and precedent transaction analysis, including calibration and valuation multiples.
• 7 Build discounted cash flow models in practice, including balance sheet integration and sensitivity analysis.
• 8 Analyze valuation scenarios for startups, mature firms, and distressed assets, applying the appropriate methods and adjustments.
• 9 Understand the due diligence process, including purpose, scope, and interaction with valuation.
• 10 Gather and analyze financial and operational information during due diligence, including normalization and risk identification.
• 11 Examine legal, tax, and regulatory considerations in due diligence, including compliance frameworks and transaction structures.
• 12 Integrate valuation and due diligence findings into M&A transaction decisions and negotiation strategies.