This course is designed to be an introductory course on the market approach used in business valuations and business calculations. Participants will be exposed to various market approach valuation methodologies. We will discuss why the market approach is used, and when it is appropriate. We will also discuss the importance of maintaining professional standards so that the valuation opinion can be presented in a court of law. We will review the NACVA and AICPA standards.
Note: This course is designed to be a prerequisite for intermediate and advanced business valuation courses to be offered in 2023.
Publication Date: March 2022
Designed For
This course is appropriate for anyone who is interested in business valuations.
Topics Covered
- Introduction to income approaches used in business valuations and business calculations
- Various income approach valuation methodologies
- Why the income approach is used, and when it is appropriate
- Importance of maintaining professional standards so that the valuation opinion can be presented in a court of law
- Review the NACVA and AICPA standards
- Business Sales vs Asset Sales
- Valuing a business
- Valuation engagemets
- Planning the engagement
- Standards of value
- Premise of value
- Market approach
- Market approach pros and cons
- Market approach for businesses
- Standard industry classification
- ISIC
- SIC versus NAICS
- NAICS
- Guideline Public Company Method
- Comparable Private Transaction Method
- Prior Sale Method
- Levels of value
- Premiums and discounts
- Current issues
- Conclusion of value
- Business valuation report
Learning Objectives
- Identify the reasons for performing a valuation engagement using market approach
- Identify basic market approach methodologies
- Identify how best to do the valuation of an ownership interest in a public company
- Identify the engagement that would involve performing an analysis on a valuation report completed by another valuator
- Identify the discount that cannot be applied in a business valuation
- Identify what would be applied if more than 50% of the business was being valued
- Identify a premise of value
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Auditing (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Robert K Minniti
DBA, CPA, CFE, Cr.FA, CVA, MAFF, CFF, CGMA, PI
Dr. Minniti is the President and Owner of Minniti CPA, LLC. Dr. Minniti is a Certified Public Accountant, Certified Forensic Accountant, Certified Fraud Examiner, Certified Valuation Analyst, Certified in Financial Forensics, Master Analyst in Financial Forensics, Chartered Global Management Accountant, and is a licensed private investigator in the state of Arizona.
Dr. Minniti received his doctoral degree in business administration from Walden University, received his MBA degree and Graduate Certificate in Accounting from DeVry University’s Keller Graduate School of Management, and received his Bachelor of Science in Business Administration degree from the University of Phoenix. Dr. Minniti taught graduate and undergraduate courses in forensic accounting at DeVry University, Grand Canyon University, Kaplan University, Northwestern University, and the University of Phoenix. He designed graduate and undergraduate courses for Grand Canyon University, Northwestern University, and Anthem College.
He is a writer and public speaker. He has experience in forensic accounting, fraud examinations, financial audits, internal audits, compliance audits, real estate valuations, business valuations, internal control development, business continuation planning, risk management, cyber security, privacy laws, data security, Sarbanes-Oxley compliance work and business consulting. In addition to his practice Dr. Minniti is an instructor teaching continuing professional education classes for a variety of providers and CPA Societies.
Dr. Minniti is currently serving as a board member on the National Association of Certified Valuators and Analysts' (NACVA) Litigation Forensics Board (LFB) and as a committee member on the Arizona State Board of Accountancy's Law Review Advisory Committee.