Business Valuation Series
1. Introduction to Business Valuations
Identify core valuation concepts and standards used in business valuations. Learn how defining the concepts, determining the valuation purpose, using various standards of value and accessing the different types of valuations that are available for companies. This introduction will set the stage for the remaining videos in the Business Valuation Series.
2. The Quantitative Analysis
Quantitative analysis deals with reviewing various business models and collect the necessary financial information. Topics are discussed where the income statement and balance sheet may need to be adjusted to reflect the operating business. This leads to an overview of forecasting the income stream for five years and applying risk factors (discount rate) to that income stream.
3. The Qualitative Analysis: Non-Financial Subjective Factors
Qualitative analysis deals with non-financial aspects of the company that impacts business value. Here, we will discuss the major risk factors and how they impact business value. In addition, we will discuss actions to consider for decreasing these subjective risk factors to maximize the transferable value. The quantitative (financial) and qualitative (non-financial) aspects are the core value drivers.
4. VALUATION APPROACHES AND METHODS
Business valuations are based on the traditional three approaches to value. We will review the Asset Approach, the Income Approach and the Guideline Market Multiples (selling multiples) Approach to value with the corresponding methods and calculations. We will talk about which approaches to value are best to use for specific business types and how they might be weighted for a blended value.
Lending Practices Series
1. Introduction: Lowering the Cost of Capital
This introduction in the Lending Series will provide you with an overview of lending terms and standards and why good business practices generate higher credit lines and lower interest costs. Most important, you will see how to use the Performance Checkup Report to organize and take control of the story lenders have about the business.
2. OPTIMIZING WORKING CAPITAL TO MEET SHORT-TERM CASH NEEDS
Often company’s have seasonal or short-term working capital needs. See how lenders use coverage ratios and utilize loan collateral when providing credit. Use the Performance Checkup Report to generate more cash from operations and establish a higher credit line and lower rates.
3. OPTIMIZING TERM LOANS TO MEET LONG-TERM CAPITAL NEEDS
If the company is purchasing equipment, investing in its fixed assets, buying out a shareholder or refinancing the business, it is useful to see how lenders view the company’s balance sheet leverage. In this video we discuss measuring and optimizing loan coverage ratios which may allow the company to establish a higher credit capacity and lower interest rates.
4. DEBT TO EQUITY RATIO: MAINTAINING A STRONG BALANCE SHEET
Lenders loan to companies with strong balance sheets. Relate the Performance Checkup Report to lending metrics in order to generate additional profit and retained earnings. You will see how strong balance sheets and debt to equity ratios better position a company to remain competitive and prosper.
5. Advisor, Chair, and Reseller Guidelines to Facilitate Conversation
Identify concepts that allow you to facilitate and guide the lending discussion in your advisory practice. See how to relate the Performance Checkup Report to the company’s financial operations, allowing them to achieve their short- and long-term lending objectives.