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What you'll learn...
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In just two power-packed days you will learn everything you need to know about corporate finance, including:
- How to Understand and Use Financial Statements
- Financial Analysis and Financial Ratios — Clearly Explained
- Common Manipulations and Financial Misrepresentations
- Cost of Capital Calculation Made Easy
- How to Value a Business: Step-by-Step Explanation
Essential Knowledge for Non-Financial Business Professionals
(also ideal for Attorneys – Approved for MCLE Credits)
No Other Two-Day Financial Program Provides Business Professionals with More Financial Training.
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Seminar Agenda
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Understanding the Basics
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- Definitions, Rules and Generally Accepted Accounting Principles (GAAP)
- Debits & Credits: Clearly Explained
- Accrual Accounting: Why We Use it
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Using the Balance Sheet
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- How Items are Arranged on the Balance Sheet and Why; Using the Four Quadrants of the Balance Sheet
- How to Instantly Determine Liquidity and Too Much Debt; Strong Balance Sheets Explained
- How a Firm Gets Equity: Two Ways
- The Business Operating Cycle: How a Business Gets its Cash
- Tricks ’n’ Traps of the Balance Sheet
- Receivables: Typical Nanipulations
- Inventory: Making Sense of LIFO, FIFO
- Goodwill: How to Value
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Using the Income Statement
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- How to Use Profit Checkpoints
- Why Gross and Net Margin are Critical Measures; Instantly Determine Profitability
- Determine Product Line Profitability
- Calculate Break-Even (Service and Manufacturing Business)
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Common Manipulations
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- Identifying Common Fraud
- How to Locate Padded Expenses and How to Present Your Evidence
- Manipulating Net Income by Overstating (Understating) Inventory
- Spotting the Five Most Common Deceptive Accounting Practices Currently in the News
- Sarbanes-Oxley and Corporate Governance Overview
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Ratio Analysis: What the Numbers Really Mean
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- Horizontal and Vertical Analysis for a Rapid Understanding
- Liquidity Ratios: Current Ratio; Quick Ratio; Cash Ratio
- Activity Ratios: Days Sales Outstanding (DSO); Days Sales in Inventory (DSI); Asset turnover; Return on Assets (ROA)
- Leverage Ratios: Debt to Equity; Interest Coverage
- Profitability Ratios: Return on Equity (ROE); Return on Invested Capital (ROIC); Gross Margin; Net Margin (ROS); Book Value; Price to Earnings (P/E) Multiple
- How to Find and Use Industry Averages
- Predicting Bankruptcy
- Trend Analysis: Five-year and Quarterly
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Understanding the Statement of Cash Flows
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The Statement of Changes in Shareholder Equity
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- Retained Earnings and Dividends
- How to Account for Stock Splits
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Using Annual Reports
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- Footnotes and What to Notice
- Management’s Discussion and Analysis
- Types of Audit Reports and What They Mean
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How to Use Value Line and S&P Reports
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Business Valuation Situations
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- M&A; Divestiture; Spin-off; IPO; ESOPs
- Commercial Litigation
- Economic Loss Analysis; Insurance
- Buy-Sell Agreements: Sample Agreements
- Partnership Buy-ins or Buy-outs; Franchises
- Estates, Trusts and Taxation Situations
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Business Valuation Terminology
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- Value of What to Whom?
- Alternative Definitions of Value:
- Going Concern Value and Goodwill
- Market and Income Based Value
- Liquidation Value; Book Value; Fair Value
- Cash Flow, Free Cash Flow and Discounted Cash Flow (DCF)
- Capitalization and Discount Rates
- Control Premium and Minority Discount
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Preliminary Steps in the Valuation
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- The Engagement Letter: Defining What is Being Valued: Equity; Assets; Other
- Preliminary Analysis: Prior Financials; Ratios and Trends; Company History; Industry Averages; Tax Considerations
- Typical Normalization Adjustments
- Top-line Analysis: Sales Trends and Market Share
- Bottom-line Analysis: Profit Margins and Excess Expenses
- Balance Sheet: Value of Tangible Assets; Unrecorded Debt; Goodwill and More!
- Unusual and Extraordinary
- Finding the Market Price of Similar Firms
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Forecasting Cash Flows
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- How to Determine Cash Flow to the Owners
- How to Spot Unrealistic Projections
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Time Value of Money
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- Net Present Value (NPV) and Discounted Cash Flow (DCF) Mechanics Explained in Simple Terms – and What Questions to Ask
- How Risk Impacts the Calculation
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Valuation Mechanics: Explanation and Case Study
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- Establishing the Discount, Capitalization and Growth Rate
- Calculating the Weighted After-Tax Cost of Capital (WACC); The Cost of Debt and Equity
- Short-Cut WACC Calculation Using Value Line
- Methodologies for Private Firms
- Establishing and Normalizing the Stream of Income to Be Valued (Capitalized)
- Income Concepts: NIBT; Operating Income; Excess Earnings
- Cash Flow Concepts: Cash Flow from Operations; Free Cash Flow
- Projecting Income to Be Valued
- Understanding the Growth Rate and Terminal Value
- Comparison to Other Valuation Approaches
- Case Study: How To Value a Corporation
- Discounted Cash Flow (DCF)
- Asset-based Approaches
- Market-based Approaches
- Comparables; Market Data Analysis
- Don’t Be Dumb With Rules of Thumb
- Reconciling Differences Between Methods
- Premiums and Discounts
- Control Premium vs. Minority Discount
- Marketability Discount
- Key Person and Blockage Discounts
- Who Pays for Synergy?
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Special Valuation Issues
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- LLC, LLP and Sub-S (Service Firms)
- Partnerships; Joint Ventures; Non-Profits
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How to Value Intangible Assets– Overview and Examples
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- Market-based Assets (Branding)
- Contract-based Assets
- Technology-based Assets
- Workforce-based Assets
- Corporate Organizational Assets
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Understanding the Valuation Report
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- Standards: Full, Letter and Oral Reports
- Full Written Report: Required Disclosures
- How to Critically Review a Business
Valuation Report
- Assumptions and Limitations
- Professional Credentials of Valuator
- Definition of Valuation Assignment
- Sources of Information
- Analysis of Adjustments
- Comprehensiveness, Accuracy, Coherence
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10 Most Common Errors Found in Valuation Reports
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Summary of IRS Revenue Rulings on How To Value a Business
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Who Should Attend?
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Any business professional or attorney who would like to learn in just two days: (1) how to understand and analyze financial statements and (2) how to value a business should plan to attend. Included in this group are administrators, VPs and general managers; sales, marketing and manufacturing executives; engineers and IT professionals. This seminar is also ideal for corporate counsel and their staff and attorneys who work in banking, securities or insurance and is also a great basic refresher for accounting and financial professionals.
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Instructors
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In-house Presentations ...
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If you have a group of 12 or more employees who need to understand financial Analysis and/or business valuation, NCCE’s customized training may be the cost-effective solution for your organization. Bring this course in-house and provide your staff with the critical financial know-how to immediately add value to your firm.
Courses can be tailored to a 4-, 8-, 12- or 16-hour presentation, with the comprehensive case study geared to a featured public company you select (such as a competitor).
For more information or to schedule a custom in-house program, email NCCE at contact@nccetraining.com or telephone 800-635-9615.
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© Copyright 2006 Performance Seminars, Inc.
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