Valuations – The Barebones

Accounting, finance, governance and tax professionals are frequently presented with issues involving valuation or pricing matters, whether in planning scenarios (e.g., tax, estate, succession, ESOP, shareholder agreements, marriage/co-habitation contracts, transactions/M&A, financing, etc.), dispute (shareholder, matrimonial, corporate/commercial, tax, estate, purchase and sale issues, etc.), financial reporting or other situations. While best practice in many situations will dictate the involvement of a valuation expert, whether for an independent report or other assistance, it is very helpful for the trusted advisor or finance professional to have a sufficient understanding of valuations and be able to speak the same language as the valuator, understand the relevant parameters of the particular situation, and communicate valuation-related issues to the client.

Topics covered will include:

1. Valuation definitions, reference points, principles, frameworks and concepts

2. Valuation basics

• Valuation methods and approaches
• Selecting the right methods/approaches
• Extent of understanding and analysis required of business, industry, economy, etc.
• Sources of relevant information
• Components of value

3. Common uses of valuation reports

4. When a valuation is or should be undertaken, and when formal valuations and the use of valuation specialists/experts are not required

5. Practice standards for CBVs/valuation professionals and relevance for non-valuation professionals

• Source and coverage of valuation standards
• Types of reports
• How much is enough work and what type of work is required?
• Applicability for accounting practitioners
• Key application issues

6. Critical engagement issues

7. Importance of reality checks and triangulating methods/approaches and results

8. Common issues faced by valuators

• Technical
• Practical
• Ethical

9. Reading a valuation report

10. Issues faced by accounting professionals who rely on valuation reports

Instructor(s): Melanie Russell, FCPA, FCA, CBV, CIM, CFE, CFF, ABV, FDRP-Val, Founder and President of Kalex Valuations Inc.