The NACVA conference in Fort Lauderdale, Fla., on December 6-9 will have five tracks: business valuation, healthcare valuation, forensics, M&As, and transaction advisory services. One of the sessions will be on common errors in valuation.
Boost defensibility: “The aim of the presentation is to give attendees insight into common issues that we have seen in valuation reports we have reviewed over the years,” says Sean R. Saari (Skoda Minotti), who will conduct the session. “Armed with the knowledge of these common errors, we hope that practitioners are able to review their reports/templates and identify ways to make their conclusions more defensible in the face of scrutiny from opposing experts.”
One of the common errors Saari will cover is the confusion of equity value and enterprise value. “Valuation multiples applied in the market approach are typically based on, and provide an indication of, a company’s enterprise value, not its equity value,” he says. “The expert needs to subtract the company’s debt and add its cash balance to its enterprise value in order to reach an equity value. If these adjustments are not made, the concluded value is not likely to be accurate and is subject to attack.
Special offer: BVR has arranged with NACVA for a special offer for attendees to this conference. For more information and registration details, click here.
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