The engagement arises from a marital dissolution involving a closely-held high-tech company. The company is a premarital asset that needs to be valued as of two dates when the company was growing at different levels in an industry that changed dramatically. Valuation issues include choosing approaches, methods and even SIC codes. Examine how financial analysis, industry factors, compensation, data sources, capitalization rates and other key factors are handled.

Objectives:

·         Understand how other professionals make those subjective judgments on theoretical and practical matters frequently arising in the course of small business valuation

·         Identify the documentation necessary to support the valuator's conclusion

Highlights:

·         Walk through the steps of a valuation using the market and income approaches

·         Address the standard of value, company history, general economic and industry data

·         Analyze and adjust financial statements and compensation

·         Find data sources for staffing and compensation, guideline company, merger and acquisition, and restricted stock studies

·         Calculate premiums, discounts, and capitalization rates

·         Examine the justification for purchase test and reconciliation of values

·         Identify the underlying working papers to adequately document the engagement staff's work

Who Will Benefit: Practitioners with prior business valuation experience

Prerequisite: Moderate business valuation experience