8:30–9:40 A.M. General Session
Business Valuation: Before, During and After COVID-19
James R. Hitchner, CPA, ABV, ASA, CFF, Financial Valuation Advisors
It has been a long year+ with many challenges in business valuation. We tried a lot of things; some worked, and some did not. This presentation will show you how business valuation changed during 2020 and give you better tools and data NOW to help you prepare a valuation. This includes the right tools for computing discount, growth, and capitalization rates; economic and industry data; discounts and premiums; supportable income, market, and asset approach methods; and BV standards.
The participant will learn about the following:
- A new look at valuation dates and “known or knowable”
- How to apply probabilistic scenario analysis in the CCF
- Alternatives to using probabilistic/scenario analyses in the DCF
- Examples on discount rates and why you must look beyond the data inputs
- Company specific risk – Is it the great equalizer in this pandemic?
- New support for growth rates
- A fresh look at the guideline company transactions method
- How to use public market data – it’s still not so easy
- Why going concern values can be less than the net asset value
- Discounts for lack of marketability and control
- BV standards – more important than ever
9:40–9:50 A.M. Break
It's time to stretch and get a coffee refill.
9:50–10:50 A.M. General Session
Best Practices in the Income Approach
James R. Hitchner, CPA, ABV, ASA, CFF, Financial Valuation Advisors
Hitchner will address best practices in the capitalized cash flow method, the discounted cash flow method, and the cost of capital including:
- Blended long-term growth rates
- CCF vs. DCF
- Weighting historical cash flows
- Normalizing debt in the direct to equity method
- The mid-year convention in a CCF method
- Perpetuity may not be as long as you think
- Implied growth rates when using exit multiples in the terminal year
- Proper due diligence with projections
- Why MCAPM and the BUM are still valid
- Why the size premium is still valid
- Company specific risk
- Capital structure weights
10:50–11 A.M. Break
11 A.M.–12:10 P.M. General Session
The State of the U.S. Economy and Where to Invest
Stephanie Link, Hightower Advisors
The discussion will surround:
- The most current economic data points in the US for the rest of 2021 and what to expect in 2022
- The Fed/monetary policy, fiscal policy and the implications for interest rates and inflation
- The implications for earnings and equity markets
- Which sectors to invest in within the equity markets
- Is the 60%-40% allocation dead?