BV204 Advanced Topics in Business Valuation

General Information

This OnDemand course provides students with convenient 24-7 online access to instructional modules via "My ASA Courses" immediately following registration. 

This course consists of:

• Narrated instructional modules;
• Downloadable course handout materials (PDF); and
• Practice exam questions.

Printed or hard copies are not provided to ASA OnDemand course registrants. Once the course OnDemand course and downloadable materials have been accessed, the course is no longer refundable.

The course and final exam must be completed within 90 days of purchase. The option to request an additional 90 day extension at education@appraisers.org is available (non-refundable fee is applicable). At any point throughout the duration of this OnDemand course, the student has the option to go back and log in to repeat and/or review any of the modules and/or practice tests. 

ASA-accredited members (AM, ASA, FASA) who would like to attend this class will receive a 50% discount. This discount will be automatically applied at checkout.

The final exam is multiple choice and securely administered online and remotely proctored. Contact education@appraisers.org if you have any questions regarding the final exam.

Description

This capstone course applies the general valuation theory and principles learned in BV201, BV202 and BV203 and introduces the student to a variety of advanced valuation applications.  This course is presented in the following chapters (see more detail below): Pass-Through Entities; Intangible Assets; Non-US Cost of Capital; Fairness Opinions; Solvency Opinions; Value Allocation in a Complex Capital Structure; Employee Stock Ownership Plan Valuation; Valuation of Debt and Preferred Stock; Litigation Services; and Advancement and Accreditation.

• Chapter 1. Pass-Through Entities (2 hours) covers topics including (i) the economic and tax differences between pass-through entities and C corporations, (ii) the Tax Court cases that changed the landscape of pass-through entity valuation and (iii) the emerging valuation models used to quantify the value differential between pass-through entities and C corporations.
• Chapter 2. Intangible Assets (4 hours) covers topics including (i) definition, identification and categorization of intangible assets, (ii) introduction to applicable valuation methods, (iii) issues related to goodwill and (iv) the excess earnings method.
• Chapter 3. Non-US Cost of Capital (2 hours) covers topics including (i) defining and evaluating various non-US country specific risks and (ii) an overview of several quantification methods for non-US cost of capital, including advantages and disadvantages of each.
• Chapter 4. Fairness Opinions (1.5 hours) covers topics including (i) corporate directors’ duties, (ii) foundational issues of fairness opinions, (iii) underlying financial analyses and (iv) unique fairness-related issues.
• Chapter 5. Solvency Opinions (1.5 hours) covers topics including (i) underlying bankruptcy and fraudulent conveyance issues, (ii) foundational issues of solvency opinions, (iii) underlying financial analyses and (iv) unique solvency-related issues.
• Chapter 6. Value Allocation in a Complex Capital Structure (5 hours) covers topics including (i) fair value considerations, (ii) valuation methods for early-stage companies, (iii) relevant features of equity securities, (iv) primary equity allocation methods and (v) issues relating to estimating volatility.
• Chapter 7. Employee Stock Ownership Plan Valuation (1.5 hours) covers topics including (i) an introduction to ESOPs, (ii) various ESOP-specific engagement issues and (iii) the valuation impact of various ESOP-specific characteristics.
• Chapter 8. Valuation of Debt and Preferred Stock (1.5 hours) covers topics including (i) an overview of security characteristics affecting value, (ii) fundamentals of credit analysis and (iii) adjusting a market-derived yield for company-specific issues.
• Chapter 9. Litigation Services (1.5 hours) covers topics including (i) an overview of the U.S. judicial system, (ii) types of disputes requiring valuation evidence (iii) principals of evidence and testimony, (iv) the litigation process and (v) measures of economic damages and available remedies.
• Chapter 10. Advancement and Accreditation (1 hour) covers topics including (i) prerequisites for advancement, (ii) experience requirements, (iii) guidelines for submitting appraisal reports, (iv) a review of common report flaws and (v) recommendations for success.

Instructional Methods

Methods include narrated instructional modules 

Course Audience

BV204 is one of four Principles of Valuation (POV) courses required for those seeking a credential with ASA.  In addition, this course is also of interest to accountants, attorneys, business brokers, investment bankers, Internal Revenue Service staff and the appraisal community at large who are involved or interested in the valuation of businesses.

Learning Level 

Advanced

Continuing Education and Contact Hours

28.8 ASA CE Instructional Hours and 3 Exam Hours | CPE hours are not awarded for this offering.

Upon completion of this course, students will be able to:

• Appropriately value pass-through entities (e.g., Subchapter S corporations, limited partnerships, and limited liability companies) in a manner that appropriately reflects any benefits associated with the tax benefits afforded to such entities.
• Recognize the differences between intangible assets, intellectual property, and goodwill, and understand methods commonly used to value intangible assets.
• Examines the difference in risk characteristics of investing in various countries, and explore the principal models used to estimate present value discount rates that incorporate country-risk premia.
• Understand the legal obligations of corporate directors in the context of control transactions, and how fairness opinions help directors manage that risk and enable directors to make better-informed decisions.
• Apply commonly used valuation and financial modelling techniques to assess the capital adequacy of companies undertaking highly leveraged transactions, and recognized how solvency opinions assist corporate boards in fulfilling their fiduciary duties.
• Recognize a complex capital structure and interpret how the various rights of each security class translates into economic value in a liquidity event or a corporate valuation.
• Identify the key aspects of Employee Stock Ownership Plan valuation, including the regulatory environment and unique attributes of ESOP-owned stock that affect fair market value.
• Distinguish between debt and equity securities, and employ credit analysis and DCF techniques to value interest-bearing debt.
• Understand generally the litigation process and how appraisers can provide vital assistance in many types of legal disputes, and explore the principal models used to assess economic damages.
• Prepare a written appraisal report in a manner consistent with relevant standards and which expresses the underlying analyses in a clear, concise, consistent, convincing, and credible manner.