Negotiating a VC Equity Stake: the VC Method in Early Stage Valuation iconNegotiating a VC Equity Stake: the VC Method in Early Stage Valuation

Negotiating a VC Equity Stake: the VC Method in Early Stage Valuation

Nov 11, 2020 1:20pm ‐ Nov 11, 2020 2:35pm

Identification: FVC2046

The Venture Capital Method is a common approach to valuation for negotiating new stakes in portfolio company deals. One of the challenges of the Venture Capital method is how to reconcile the "Target Returns" that VC investors aspire to in entering into a new deal (typically 30% or above) with the "Required Returns" that investors expect to achieve based on the historical evidence of venture capital fund returns. In this presentation we show some practical examples of how, given the (1) time horizon, (2) projected exit value for the deal; (3) expected risk of failure and (4) expected dilution percentage over the term to exit, an investor can determine the ownership percentage that needs to be negotiated in order to achieve its required return in a specific deal.
Learning Objectives:
  • Illustrate how to set up a model under the Venture Capital Method to determine the target equity valuation and ownership percentage in a venture capital deal.
  • Determine how to factor into the model expectations on the company's probability of success and equity dilution.
  • Analyze the relationship between Target Returns and Required Returns under the VC method.
  • Demonstrate the interaction between time to exit, valuation at exit, and returns in evaluating performance for a VC deal.
Cost of Capital in Turbulent Times iconCost of Capital in Turbulent Times

Cost of Capital in Turbulent Times

Nov 11, 2020 1:20pm ‐ Nov 11, 2020 2:35pm

Identification: FVC2048

Estimating the cost of capital during the Covid-19 pandemic is challenging. We will examine what was "known and knowable" at various dates, the impact on the economy due to the pandemic, the shut-down and the reopening, the impact of actions by the Federal Reserve on the risk-free rate, and the changing risks that need to be reflected in the equity risk premium. We will also examine how to use the DCF method of valuation and what might be long-term growth once we return to "normal".
Learning Objectives:
  • Discuss factors to consider in estimating the cost of capital during a turbulent economy
  • Identify expected changes in economic growth during and after the pandemic
Valuations Meet Forensic Accounting: How to Conduct Successful Interviews iconValuations Meet Forensic Accounting: How to Conduct Successful Interviews

Valuations Meet Forensic Accounting: How to Conduct Successful Interviews

Nov 11, 2020 2:50pm ‐ Nov 11, 2020 4:05pm

Identification: FVC2051

Valuators are often required to conduct interviews of relevant parties when preparing a business valuation. Such parties may include your clients, shareholders, management, or industry experts. But what can a valuator do if they suspect they are being lied to? How can a valuator better prepare for an interview with a hostile or unwilling party?

This presentation will provided a detailed analysis, including live interactive interviewing examples of best practices and approaches when preparing for, and conducting, interviews to obtain better corroborating information when valuing a business.
Learning Objectives:
  • Identify best practices and approaches to prepare for, and conduct an interview (the devil is in the detail).
  • Discover practical tips on how to better listen in an interviewee (and hear what an interviewee isn't saying).
  • Determine how to better leverage publicly available information when researching an interviewee (and their personality).
  • Use real case-based examples of proven tips and tricks when conducting an interview.
Bus Com Update iconBus Com Update

Bus Com Update

Nov 11, 2020 2:50pm ‐ Nov 11, 2020 4:05pm

Identification: FVC2052

Representatives from the AICPA Business Combinations task force, which is developing an Accounting and Valuation Guide on this topic, will update you regarding the latest developments on the guide and provide an overview of valuation guidance that you can expect to see in the guide. The presentation will specifically include the following:



  • Discussion of the Internal Rate of Return analysis
  • Discussion of splitting profit between multiple classes of pivotal assets and deriving simulated royalty rates
  • Walk through of the examples to be included in the draft guide
Learning Objectives:
  • • Analyze example adjustments to consider to the IRR when the WACC and IRR do not reconcile
  • • Determine how to split profits and calculate a simulated royalty rate
Attorneys View - Planning Credible Lost Profits Analyses for Experts iconAttorneys View - Planning Credible Lost Profits Analyses for Experts

Attorneys View - Planning Credible Lost Profits Analyses for Experts

Nov 11, 2020 2:50pm ‐ Nov 11, 2020 4:05pm

Identification: FVC2053

Financial experts face many challenges when they perform their diverse roles in preparing estimates of lost profits in litigation matters. Developing credible expert opinions for economic damages requires the financial expert to carefully consider the materials available or to be obtained and the approaches/assumptions to be utilized, and to support/substantiate the estimates being proffered.  This presentation focusses on certain factors, from an attorneys' perspective, that financial experts should consider when preparing and executing the subject analyses. Financial experts can improve their outcomes by properly planning and executing each of the five factors.  During the program the speakers will refer to certain cases that discuss the critical factors and provide observations.
Learning Objectives:
  • Help the financial expert identify the importance of the unique risks in determining lost profits analyses for each matter (where it is appicable).
  • Discover the framework/guidance necessary to document, develop, and establish credible lost profits analyses based on the subject dispute.
With Great Value Comes Great Responsibility: Healthcare Transactions iconWith Great Value Comes Great Responsibility: Healthcare Transactions

With Great Value Comes Great Responsibility: Healthcare Transactions

Nov 11, 2020 2:50pm ‐ Nov 11, 2020 4:05pm

Identification: FVC2054

The healthcare industry has undergone a series of rapid changes within the past year, not the least of which is the increased scrutiny of healthcare transactions.  During this session, a brief review of significant and recent settlements with the federal government related to False Claims Act will be provided, including considerations related to healthcare transactions based upon experience interacting with the the Department of Justice.  This session will also examine alignment trends while outlining prevailing compensation models and physician services arrangements.  Lastly, this session will highlight the current environment impacting physician compensation associated with the pandemic and discuss key insights with regards to physician resources during and after the pandemic.


Learning Objectives:
  • Describe applicable healthcare regulatory environment and demand for healthcare transaction valuation services.
  • Explain significant and recent settlements with the federal government related to False Claims Act.
  • Evaluate key valuation and compliance related insights garnered from work with the DOJ.
  • Summarize the current environment impacting provider compensation associated with the pandemic.
Hot Topics in Financial Crime: 2020 Edition iconHot Topics in Financial Crime: 2020 Edition

Hot Topics in Financial Crime: 2020 Edition

Nov 11, 2020 2:50pm ‐ Nov 11, 2020 4:05pm

Identification: FVC2055

In this advanced track presentation, we explore the evolving landscape of criminal financial investigations and prosecutions, and how shifting policies at the U.S. Department of Justice and its international counterparts shape the extent to which financial offenses come into the crosshairs of criminal authorities.  Now, more than perhaps ever before, financial conduct that was once the subject of mere civil or regulatory scrutiny, is the focus of criminal investigations.  The synergies between white-collar criminal defense lawyers and forensic accountants are stronger now than any point in recent history.  From setting forth the current trends in white-collar investigations, to dissecting the applicable accounting principles and the legal framework that drives them, the panel breaks down the government's motive for, and technology driven methods of, investigating financial crime in 2020.

Learning Objectives:
  • Summarize the current legal landscape surrounding white collar criminal prosecutions.
  • Assess the forensic accountant's role in criminal investigations.
Unlocking Insight for Decision Making: The Next Level of Financial Analysis iconUnlocking Insight for Decision Making: The Next Level of Financial Analysis

Unlocking Insight for Decision Making: The Next Level of Financial Analysis

Nov 11, 2020 4:35pm ‐ Nov 11, 2020 5:50pm

Identification: FVC2056

As valuation practitioners, were perform financial statement analysis to gain an understanding of the business we are valuing and its cash flow. In today's economic environment, it's more important than ever to expand our financial analysis to help clients understand their current and expected financial picture, address cash flow management concerns, and help clients evaluate their investment and credit opportunities.

This session will focus on turning the financial analysis into opportunities to help clients with the financial issues they are struggling with. We will highlight key steps in financial analysis and discuss ways of evaluating current and future cash flows. In addition, we will explore turning these into decision making tools to assist clients.

Learning Objectives:
  • Describe the financial statement analysis process
  • Identify cash flow opportunities and risks
  • Convert financial and cash flow analysis to investment and debt decision making
How to Think Like a Fraudster iconHow to Think Like a Fraudster

How to Think Like a Fraudster

Nov 11, 2020 4:35pm ‐ Nov 11, 2020 5:50pm

Identification: FVC2057

Understanding fraud vulnerabilities is imperative to developing an effective anti-fraud program. To gain this understanding, organizations need to think like a fraudster and walk through possible internal and external fraud types, fraud risk entry points, and fraud actor personas that can impact individual departments and procedures. This approach helps create a comprehensive fraud risk map for your organization which is a resource you can employ to aid your fraud management activities. This session will provide the stepping stones for you to begin to become an expert in thinking like a fraudster and developing a fraud risk map for your organization.
Learning Objectives:
  • Identify what a fraud risk map is and how to think like a fraudster
  • Recognize and apply best practices for identifying fraud schemes and developing a fraud risk map
  • Describe how to customize a fraud risk map to each organization's needs
Wall Street vs. Main Street: Stock Market vs. Closely Held Business Value iconWall Street vs. Main Street: Stock Market vs. Closely Held Business Value

Wall Street vs. Main Street: Stock Market vs. Closely Held Business Value

Nov 11, 2020 4:35pm ‐ Nov 11, 2020 5:50pm

Identification: FVC2058

During 2020; amid the COVID Pandemic and economic uncertainty, the stock market saw wild swings in the market. While these wild swings may not have an initial impact on the value of closely held businesses, it does offer some insight into investor sentiments that could affect the value of a closely held company. In this presentation we will look at the trends in stock market and multiples for closely held company transaction and discuss what drivers affect the multiples being paid.

Learning Objectives:
  • Identify comparisons between the stock market trends and the trends in multiples for closely held businesses.
  • Determine what factors drive multiples up and down and what businesses can do to maintain or increase value of their business