MODULE 1: Specific Factors that Impact Value
The Advancedcourse provides an in-depth examination of some specific factors and situations that can have an impact on the valuation. It also discusses the role of the valuator as an expert giving testimony, being an expert witness and critiquing valuation reports.
In this module, the specific factors that impact value are presented in three parts:
• Part I: Agreements;
• Part II: The Regulatory Environment; and
• Part III: Foreign Jurisdictions.
This module discusses:
• The more common types of agreements that are entered into in the course of establishing an organization and the steps that a valuator should always take to assist in interpreting these agreements;
• Some of the practical limitations to an asset purchase a valuator will often encounter, where the incremental costs could outweigh or certainly partially offset the lost tax benefits;
• The key elements of distribution agreements that, like royalty arrangements, need to be understood;
• The impact of the regulatory environment including exchanges, federal and provincial tax law and common law court decisions; and
• Some of the key items that the valuator needs to consider when determining value for a domestic investor in a foreign jurisdiction.
On completion of the notes and assigned readings in this module, you will have an opportunity to demonstrate your knowledge by completing the Quick Quiz at the end of this module and applying the approaches and techniques in the Assignments and Case Study in Module 4.
MODULE 2: Special Topics
In this module, you will gain an understanding of specific valuation issues as they relate to:
• Advanced discussion on capitalization rates and comparable company multiples approaches;
• How to handle valuing companies or assets in a non-traditional industry or an industry for which the valuator has little experience;
• Specific entities and industries, including professional practices, resources - oil and gas interests, real estate, biotechnology, intellectual properties, emerging technologies and holding companies;
• Stages of the life cycle of an entity, including start-up, maturity and bankruptcy;
• Valuation considerations for financial instruments and employee stock option plans
• The overall disclosure applicable to fairness opinions, as stipulated in Appendix B to Standard 110 of the CICBV Valuation Standards; and
• Accretion/dilution analysis with respect to publicly traded companies.
This module is presented in two parts:
• Part I: Specific Entities and Industries; and
• Part II: Other Valuation Considerations.
On completion of the notes and assigned readings in this module, you will have an opportunity to demonstrate your knowledge by completing the Quick Quiz at the end of this module and applying the approaches and techniques in the Assignment and Case Study in Module 4.
MODULE 3: The Valuator as an Expert
This module discusses:
• Issues that a CBV can expect to face, and should be prepared to address, when engaged to act as an expert witness in a legal proceeding;
• The objectives of the Canadian judicial system in dealing with expert witnesses and, where applicable, the related CICBV Standards; and
• The five stages of a legal proceeding, including the requirements that the CBV must meet at each stage and some of the common pitfalls in giving expert evidence.
On completion of the notes and assigned readings in this module, you will have an opportunity to demonstrate your knowledge by completing the Quick Quiz at the end of this module and applying the approaches and techniques in the Assignment and Case Study in Module 4.
MODULE 4: Assignments and Case Study
This final module of the course includes the Assignments and Comprehensive Case Study.
The Assignment and Case Study questions are designed to:
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Test the theoretical and practical knowledge you have gained throughout the course;
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Help you prepare for your final exam for the Advanced Business & Securities Valuation course; and
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Help you prepare for the Membership Entrance Examination (MEE), which is the final step in the process of meeting the requirements to become a member and obtaining the professional designation of Chartered Business Valuator (CBV) or d’expert en évaluation d’entreprises (EEE).