11th Annual Company Valuations Masterclass

PrintBrochure
11th Annual Company Valuations Masterclass

Documentation for this event is available. Enter your access code.

About

Bright*Star’s 11th Annual Company Valuations Masterclass has been carefully researched and prepared with your business and the New Zealand environment in mind. In the aftermath of the global financial meltdown, the focus will be on the effects the recession has had on the value of businesses in New Zealand, along with discussions on valuation techniques and models. Find out what the market, investors and your competitors look for in your valuation reports and how differences in perception can have detrimental or advantageous effects. Among topics for examination are:
• Cost of Capital in turbulent times
• Examine the impacts of the Recession on Valuations
• Discuss Valuation v Pricing
• Fair Value v Fair Market Value for SMEs
• Update on Valuation Assumptions
• Employee Share based Incentive Schemes and their value implications
• Ten commandments for the Expert Witness Valuer

Our expert presenters include:
Garth Ireland, Clyth MacLeod – Clyth MacLeod Ltd,
Brendan Lyne – Grant Thornton Corporate Finance,
Brent Wheeler, Brent Wheeler Ltd,
Chris Taylor – PricewaterhouseCoopers,
Bill Apps – Grant Thornton,
Don Sloan, Business Valuations NZ,
Eric Lucas – PricewaterhouseCoopers,
Jai Basrur – Christmas Gouwland Basrur,
Andrew Sanders & Peter Lamberton – ASB Business Banking,
Paula Kearns - PKCA,
Tony Davis – Grant Thornton Corporate Finance,
Alan Dent – Deloitte,
Brendon Jones – PricewaterhouseCoopers,
Brendan Lyne – Grant Thornton Corporate Finance,
Kevin Pitfield & Jackie Russell-Green – Staples Rodway

Agenda

Day 1

8.30

Registration & Coffee

9.00

Opening remarks from the Chair

Garth Ireland, Executive Director, Ireland

9.10

Effects of Recession – Capital Market Setting for 2010

Brent will examine the capital market situation in the wake of the global recession. The rate and extent of recovery has been very uneven – stars and dogs. What direction does recovery point to for N.Z.? How do responses to the recession affect value? How, if at all, should we reflect the new market environment?
• What are the genuinely relevant costs of debt capital now?
• Has the ERP changed and should it have?
• How much danger still lurks?
• What does the future cost of capital look to be?

Brent Wheeler, Director, BRENT WHEELER LTD

10.00

Current Business Valuation Issues From a Lender Viewpoint

This session will examine what a major lending institution will take into consideration in the post – recession marketplace.
• Lending Criteria in the current market
• Surety and valuations
• Goodwill and IP
• Private v Public listed

Andrew Sanders, Business Manager & Peter Lamberton, Commercial Manager ASB BUSINESS BANKING

10.50

Morning tea

11.10

Impact of the NZ ETS on Company Valuations

New mechanisms to combat climate change mean the cost of carbon has now become a commercial reality for New Zealand business. While many businesses will have no obligations under the scheme, its financial ramifications will still reach them. The cost of carbon arising from the NZ ETS will affect businesses as the costs flow down and through the economy. This session will examine the likely impact of the NZ ETS on company valuations.
• Update on revisions to the Emissions Trading Scheme
• Impacts for Businesses
• Impacts on Valuations Future direction

Chris Taylor, Partner – Advisory PRICEWATERHOUSECOOPERS

12.00

Case Study: Technology Sector Valuations

This session will examine the challenges of valuing technology sector organisations in a fast developing technological age.
• Difficulties of comparative analysis
• Uniqueness - help or hindrance?
• R&D and IP issues
• Influence of the buyer on the valuation

Jai Basrur, Director CHRISTMAS GOUWLAND BASRUR CONSULTING LTD

12.45

Lunch

1.45

Valuation V Pricing

A realistic company valuation requires a thorough analysis of several years of the business operation and opinion about the future outlook of the industry, the economy and competition. However there may be a wide disparity between the perceived value and a realistic price. This session will examine the difficulty of establishing a fair market price for a company.
• What is Fair Market Value?
• Assessing the appropriate rate of return
• How much influence does the type of buyer have on the price?

Mark Paterson, Manager - Corporate Finance, PRICEWATERHOUSECOOPERS

2.30

Fair Value v Fair Market Value for SMEs

Over the last few years a number of independent surveys have been carried out within the New Zealand business sector, focusing on the “Baby Boom” generation and the fact that many owners of businesses or professional practices will soon be entering into the retirement phase of their careers. Many business valuers are now experiencing the early onset of an increase in demand for business valuations associated with this change in asset ownership. Experience indicates that while many valuers place significant emphasis on the “numbers” or financial performance of the business, they often pay far less attention to other, non financial, aspects which are also fundamental to the valuation assignment taking place. This session will identify five key aspects of the valuation process which need to be addressed by the valuer before commencing the assignment in order to ensure that the valuation conclusion is consistent with the context or circumstances of the business which is to be valued, and that the valuation conclusion is soundly supported:
• Who is the client?
• What is to be valued?
• Value to whom and for what purpose?
• Applying the principle of “best use, highest value”
• The valuation process

Don Sloan, Managing Director, SLOAN & CO

3.15

Afternoon tea

3.30

Appraising SME in a Down Market

The problems in producing credible and defensible opinions of value when current profits are down but should recover as the economy improves.
• The folly of forecasts
• The irrational market
• Business value and behavioural economics

Clyth MacLeod, Managing Director, CLYTH MACLEOD LTD

4.15

Panel Discussion: Practical Aspects of SME Valuations (Panel)

This will be your opportunity to put your questions to our expert panel experience in SME valuations
• Difficulties with DCF in the SME world
• Determining Reasonable compensation
• Direct Market Method
Clyth MacLeod, Managing Director
CLYTH MACLEOD LTD
Don Sloan, Managing Director
SLOAN & CO
Garth Ireland, Executive Director.
Ireland, Wallace and Associates

5.00

End of Day 1 and Networking Drinks

Day 2

9.00

Welcome back from the Chair

Garth Ireland, Executive Director, Ireland Wallace and Associates

9.10

Cost of Capital in Turbulent Times

Calculating cost of capital in the current environment is providing valuers with a few challenges. Simple application of the CAPM formula can generate results that can appear counter-intuitive when compared against what is happening in global stock markets. This session outlines topical issues faced when estimating cost of capital and provides practical insight on dealing with those issues.
• Movements in the market risk premium
• Impact of market turbulence on beta estimates
• Optimal level of gearing Movements in risk free rate
• Liquidity premium and other alpha adjustments

Brendon Jones, Director – Corporate Finance PRICEWATERHOUSECOOPERS

10.00

The Ten Commandments for Expert Witnesses

As an expert valuer you will be required at some stage in your career to defend your valuation in a court of law. It is important that you understand the cut and thrust of expert evidence. In considering the ten commandments of an expert witness the following will be discussed:
• Your duties and responsibilities as an expert
• How to bullet-proof yourself and your opinions
• What experts do when preparing to testify
• How to handle opposing expert evidence
• How to handle cross-examination tactics

Brendan Lyne, Director, GRANT THORNTON

10.45

Morning tea

11.00

Using Comparable Companies Analysis

• Comparative valuation in context
• Issues in choosing comparable companies
• Stepping through comparative company analysis – the process
• Pitfalls of comparative analysis
• Comparison of Comparative with absolute (DCF) valuation

Bill Apps, Associate - Corporate Finance, GRANT THORNTON CORPORATE FINANCE

11.45

Update on Valuation Assumptions

• Valuation metrics: WACC, multiples and capitalisation rates
• Control Premiums
• Minority Discounts
• Liquidity Discounts
• Data Sources and Precedents

Alan Dent, Partner Corporate Finance, DELOITTE

12.30

Lunch

1.30

Valuation and Accounting Reporting Requirements

This session will examine the key reporting requirements under IFRS that all accountants and valuers need to understand.
• Key issues under NZ IFRS 3, NZIAS 36 and NZ IAS 38
• An overview of IFRS valuation requirements
• Common IFRS valuation problems, and solutions
• War stories

Jackie Russell-Green, National Technical Manager, STAPLES RODWAY - CHARTERED ACCOUNTANTS

2.15

Valuation Methodologies Overview

Discuss the various valuations methodologies available to the valuer and their relative strengths and weaknesses
• Techniques for measuring risk in corporate valuations
• Market multiples, discounted cash flow and asset based approaches
• Selecting the right methodology

Tony Davis, Director Corporate Finance, GRANT THORNTON CORPORATE FINANCE

3.00

Afternoon tea

3.15

Employee Share Based Incentive Schemes and Their Value Implications

• Types of scheme - share schemes, option schemes, Convertible notes, phantom shares etc
• Illustrative examples of schemes
• Scheme restrictions and value implications
• Value of schemes
- to the employee
- for acounting purposes
- to the shareholders
• Accounting for schemes - cash based or equity based

Eric Lucas, Partner Corporate Finance Advisory, PRICEWATERHOUSECOOPERS

4.00

Summary Remarks from the Chair and Close of Conference

Sponsors

Find out more about sponsorship opportunities for this event:

Please select a point of contact