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2022 AICPA & CIMA Forensic & Valuation Services Conference

FVC2257 - “The Price is Right – Or Not” – Use and Misuse of The Market Approach Guideline Transaction Method


‐ Nov 16, 2022 12:55pm

Standard: $ 49.00

This discussion will focus on the following: * Alternative standards of value and implications for valuation: value in use v. exchange * Representative case precedent     * The market approach and alternative methods: guideline public company method and guideline transaction method     * Transaction considerations: the purpose of the transaction, motivation of the buyer/seller, financial v. synergistic buyers, distressed sales     * Importance of transaction terms: stock or asset deal, cash deal, seller-financing, contingent consideration, and non-compete agreements     * Availability of relevant financial information to assess trends, profitability, growth prospects; identify required normalization adjustments; and identify specific company risk factors (depth of management, customer concentration, leverage)     * Availability of data to assess types of products and services offered by the company     * Availability of data to permit analysis of the geographic markets and customer base served     * Assessment of the transaction date and whether the transaction multiple reflects current economic, industry, and market conditions

Learning Objectives:

  • Determine when it is appropriate to use the guideline transaction method
  • Identify the importance of transaction terms: stock or asset deal, cash deal, seller-financing, contingent consideration, and non-compete agreements

Speaker(s):

Tags:

Valuation

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