FVC2030. Balance Sheet Considerations in Income-Based Valuations - Common Errors

This presentation will focus on the importance of a proper analysis of the balance sheet of the subject company being valued.

Through a series of mini-case studies and live spreadsheet models and visuals, we will explore the importance of redundant assets, net working capital and capital expenditures considerations in the context of cash flow and income based valuations, showing how failure to consider balance sheet adjustments can result in flawed valuation conclusions.

Learning Objectives:

• Recognize how failure to consider balance sheet adjustments or normalizations can result in flawed cash flow projections and valuation conclusions
• Discuss data points to consider in order to help inform the valuator’s conclusions on various balance sheet adjustments or normalizations
• Review checklist used to ensure their valuation models are internally consistent