Purchase the Training Pack ($99.00)
to get the recording, transcript, and presentation materials for this webinar in a single download. Please allow up to 30 days after the webinar for the Training Pack to be available.
Neither the literature of finance nor the literature of valuation practitioners has taken in account the relatively short life expectancy of firms. Fewer than 50% of new firms live longer than ten years; yet, it is common practice to estimate firm value with a long term horizon model such as the constant growth model.
The purpose of this webinar is to increase awareness of the life expectancy of firms and demonstrate how to take account of the likelihood of firm death in valuation. Data on firm death rates and life expectancy that is available in the field of industrial organization is reviewed and summarized so valuation practitioners can take it into account in their valuations.
Program Agenda
Businesses do not last forever: Expected life is relatively short
Valuation errors from ignoring life expectancy
Mortality tables for human life
Evidence of firm mortality
SBA death rates
Variation across industries
Census of manufacturers
Thomas Census of Manufacturers
Financial databases
Conclusions about expected firm life
Firm mortality in business valuation
Where do we go from here?
Learning Objectives
Understand the calculations and analysis that goes into determining a firm's life expectancy
Learn how to apply this analysis to the business valuation process
Understand why and how firm mortality impacts the conclusion of value
BVR's Training Packs are an indispensable addition to any valuation reference library. Use them as training tools as many
times as you'd like, wherever you are: play them at your computer at work or home, in your car, or on your personal audio device.
Delivered as an electronic download approximately four weeks after the program has aired, each Training Pack includes:
Recordings and transcripts of the presentation
All presentation visual aids and handouts
All ancillary reading materials suggested by our presenters
If you are ordering a Training Pack after the four week window, the download link will be sent to you immediately via email. Please
check your spam folder and add customerservice@bvresources.com to your “safe list”
to ensure you receive your Training Pack.
Business Valuation Resources offers a 100% money-back guarantee on our training services. If you are not completely satisfied
with your experience, or have any feedback, please contact Business Valuation Resources at 1-503-479-8200 or
customerservice@bvresources.com.