Valuation Basics of a Private Company

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This module seeks to provide basic training and knowledge in respect of a private company.

This would be especially useful for parties seeking to sell their business, raise financing, determine the sum to be insured (as part of risk management), identifying the extent a business is managed and many more. There exist similarities and differences in respect of valuation of a private company versus a public company. These would be covered in the training.

For those who have studied and/or performed valuations before, this may also be an opportunity to refresh on the knowledge concerned.

Overall, this training will build up the capabilities of those interested to know the steps in valuing a private company. There is also some coverage on the strategies and actions to manage the value of the company.

 

Brochure

— Course Fee: RM 790.00 (Inclusive of 8% Service Tax) —

What Will You Learn?

  • Explain the purposes of undertaking a private company valuation
  • Compare and contrast private vs public company valuations
  • Explain the valuation models
  • Ascertain the factors and adjustments that may be required to be performed
  • Perform computations on valuing a private company
  • Be able to manage the value of a company

Module 1: Introduction

  • Initial comments
  • Scope of private company valuation
  • Private vs public company valuation
  • Reasons for performing valuation

Module 2: definitions of value, factors to be considered and guidelines

  • Definitions of value
  • Company specific factors
  • Equity specific factors
  • Asset valuation guidelines – Securities Commission
  • Review of Malaysian Valuation Standards

Module 3: Private company valuation approaches

  • Income approach
  • Market approach
  • Asset-based approach
  • Issues to be addressed

–    Earnings normalization

–    Cash flow estimates

–    Required rate of return

–    Adjustments for lack-of-control

–    Adjustments for lack-of-marketability

  • Worked examples and illustrations

Module 4: What Is Meant by Profit

  • Gross profit
  • Operating profit
  • Net profit
  • Contribution