COURSE OUTLINE

LESSON 1 - DATA

Introduction
-Who you are
-Why do a business valuation
-What we will cover
Fair Market Value
Internal Revenue Service
Value
Business Types
Sources of Financial Data
Definitions
- Data Items
- Asset Valuation vs. Stockholder's Equity Valuation
- Other Pro Forma Balance Sheet Adjustments
Implementation
- Heading
- Using Your Tax Returns
- Line by Line
- Main IRS Tax Form - Income Statement
- Schedule L
- Using Other Tax Returns
- Using Other Financial Statements
- Save Your Work
Summary / Next Lesson
C&S ASSOCIATES ONLINE BUSINESS VALUATION CALCULATOR - BVC
Disclaimer


LESSON 2 - ADJUSTMENTS & CALCULATIONS

Pro Forma Adjustments
- Materiality
- One Time Expenses
- Other Pro Forma Adjustments
- Discretionary Expenses
- Examples
Weights and Weighted Averages
- Pro Forma IBIT
- Pro Forma IBIT Cash Flow
- Total Capital
Implementation
- Pro Forma IBIT
- Pro Forma IBITD
- Total Capital
- Save Your Work
Summary / Next Lesson
C&S ASSOCIATES ONLINE BUSINESS VALUATION CALCULATOR - BVC
Disclaimer


LESSON 3 - VALUATION METHODS

Introduction
Concepts
- Total Capital
- Value Ranges
- Cost of Capital
Valuation Methods Explained
- Return on Investment
- Cash Flow Justification
- Excess Earnings
- Comparative Values
- Industry Rule-of-Thumb
- Replacement Value
- Discounted Cash Flow
C&S ASSOCIATES ONLINE BUSINESS VALUATION CALCULATOR - BVC
Implementation
- Return on Investment
- Cash Flow Justification
- Excess Earnings
- Comparative Values
- Replacement Value
- Save Your Work
Summary / Next Lesson
Disclaimer

LESSON 4 - RECONCILIATION

Reconciliation
- Allocating percentages to valuation methods
- Weighted average Lower and Higher Values
- Selecting one value for the Market Value of the Total Capital
- Criteria For Choosing Lower To Higher Values
- Calculating the Market Value of the Stockholder's Equity
- Calculating the Market Value of the BODA & Goodwill
Real Estate
Minority Interest
September 2002 Deal Flow / October 2004 Update
Price vs. Value
Control
Maximizing or Minimizing Your Value
Implementation
- Allocated Total of Five Methods
- Selected Value Percentage
- Market Value - Stockholder's Equity
- Market Value - BODA & Goodwill
Summary
Do-It-Yourself Valuations: Advantages & Disadvantages
Disclaimer

(Excerpts from Lesson 1)

INTRODUCTION

This is a FREE introductory course in valuing your business. The course is "stand alone" with manual calculations or may be used in conjunction with the time-saving Business Valution Calculator

This course will:

• Introduce you to many of the concepts behind valuing a business.
• Show you a step-by-step procedure for valuing a business.
• Provide you with a free manual Data Worksheet and lead you through a valuation of your own business.
• Optionally, provide you with the inexpensive C&S ASSOCIATES ONLINE BUSINESS VALUATION CALCULATOR, the BVC, to automatically make all calculations and provide default values of the valuation variables.
• Discuss how to maximize or minimize your value.
• Explain the advantages and disadvantages of "Do-It-Yourself" valuations.

You are the owner of a privately held, profit making, entrepreneurial business, with sales of less than fifty million dollars. Our limit of $50M is only a guideline that implies those businesses that are operated primarily for the financial benefit of a few owners and managers of the business.

You have at least three years of financial statements or corporate federal income tax returns (Form 1120 or 1120S)

You have fixed assets typical of a manufacturing, distribution, service, wholesale or retail business perhaps including equipment, buildings, vehicles, etc. You do not have any depletable assets, i.e. oil wells, or other natural resource type of assets. You have only a minimum amount of intangible or non-operating assets (less than 5% of the total assets) on your balance sheet, i.e. goodwill, patents, trademarks, cash value of life insurance, etc. You have all common stock, i.e. no preferred stock.

If your company doesn't meet all of these criteria, most of the concepts discussed in this course still apply to your business. However, our manual worksheets or the BVC may not apply directly to your business.

Or, you may be an accountant, financial planner, consultant or other financial advisor to businesses meeting the above criteria. You may be called upon from time to time to assist your clients with a valuation of their business. This course will help with your understanding of the introductory concepts of Business Valuation. You may find the course especially useful for training of newly hired professionals in your firm.

WHAT WE WILL COVER

This course has 4 Lessons. Lessons will be emailed to you as attachments to four email messages.

The first part of each Lesson introduces concepts that are appropriate for that Lesson. It should take an hour or less to read and study the concepts.

The second part of each Lesson is implementation.

We will first cover the implementation actions that must be done regardless of whether you use the free manual DATA WORKSHEET or the online BVC.

We will then specify which additional implementation instructions apply to the manual DATA WORKSHEET, or to the online BVC.

If you continue to use the free manual DATA WORKSHEET, it may take another one or two hours to perform the manual calculations. We will refer to you as a "manual processor".

If you decide to purchase the optional online BVC, your calculations will be done automatically for you. Your time spent on implementation will be considerably reduced.

The BVC also provides you some default values of the valuation variables that you will be asked to select for the manual DATA WORKSHEET. We will refer to you as an "online processor".

The last part of each Lesson is a Summary of what you should have gained from the Lesson and a look at the next Lesson. This should take only a few minutes to complete and is the same whether you have completed the manual DATA WORKSHEET or the BVC.

The right hand column of this page is the complete Course Outline.

Number of students taking this course