Training

Business Valuation and Acquisition

ED508 – Business Valuation and Acquisition.  Many of America’s small businesses are owned by a family or other small group of people.  These privately held companies generate significant employment and taxes in their communities.  When privately held companies are sold, smooth transfer and succession of ownership are essential to preserving their productivity.  Public economic development practitioners are key players in the business acquisition or buyout process.  They locate potential buyers by functioning as business brokers and structure acquisition financing.  The first step is determining a company’s value or worth.  However, unlike publicly traded firms whose worth is a function of stock prices, the value of privately held companies is determined by using one or more financial analysis methods.  NDC’s Business Valuation and Acquisition course explores the techniques of valuation, acquisition and buyout of small, privately held companies.  The course teaches the skills involved in evaluating a private valuating and structuring acquisition financing that protect both the purchasers and companies.  Specific topics include:

• Determining a company’s value using asset and income methods
• Weighing the impact of economic conditions on valuation
• The effect of valuation on business acquisition and financing
• Using valuation to establish a purchase price
• Negotiating a purchase price
• Determining debt capacity
• Calculating financing needs
• Financing sources and deal structuring for business acquisition
• Filling financial gaps with public and private sources

Prerequisite:  EDFP Certification