13th Annual Company Valuations Masterclass

About

The 13th Annual Company Valuations Masterclass will help valuations practitioners develop the skills they need to provide clear and concise information and valuations to their clients. Delegates will gain a clear picture of the nuts & bolts of company valuations and the many different methods, models and techniques that can be used to value an asset.  

Technical content
We continue the successful Masterclass format with highly technical content, practical workshops and extended sessions to ensure the most detailed coverage of key valuations topics.  

Laptops provided for hands-on learning
For the workshop within the conference on Estimating the cost of capital, laptops will be provided to enable hands-on learning with practice examples and worked case studies. 

All the experts, all the topics
We have secured leading company valuations experts to provide the latest updates and to answer all your questions. For 2012, we examine the Fong and Wong case, proven valuation methods and techniques, advanced coverage of valuations of cost of capital, early stage ventures, distressed companies, hybrid securities, SMEs, and much more. See the enclosed brochure for full programme or visit www.conferenz.co.nz 

Register before 16 December 2011 to save $300 with our Early Bird Special.

Agenda

Agenda: Day 1

8:30am

Registration and coffee

9:00am

Opening remarks from the Chair

Garth Ireland, Executive Director, Ireland Wallace & Associates

9:10am

The practical aspects of SME valuation

SMEs make up the bedrock of New Zealand’s economy, with them accounting for 60% of New Zealand’s employment. Though, they do provide valuers with a unique and difficult challenge, with financial informational often harder to find and disseminate, and the ongoing GFC making it difficult to value a SME.
• Multiplier or market valuation – what do they mean and how can you apply them?
• Valuing human capital, goodwill, intangibles and a company’s brand
• Discounted Cash Flow (DCF) and the difficulties in applying it in SME’s
• What is happening in the company’s macro-environment?
• What are the standards of value?

Clyth MacLeod, Managing Director, Clyth MacLeod Ltd

10:00am

Comparing and contrasting the valuation methodologies

This session will cover the various valuation methodologies and discuss their relative strengths and weaknesses.
• Market multiples, discounted cash flow and asset based approaches
• Adjusted book value, tangible net worth, income based valuation and market based valuation
• Public companies and P/E multiples
• Relating different methods of valuation
• Understanding and using different sources of information

Regan Hoult, Director, PricewaterhouseCoopers

10:50am

Morning Tea

11:10am

Workshop: Estimating the cost of capital (computer)

By popular demand: Configured laptops will be provided for the next two extended workshops to enable real hands-on learning with practical worked examples.

Estimating the cost of capital is a key aspect of the company valuation process and the wider budgeting decisions made by firms. Though, in the current economy this is proving an issue for valuers. The Weighted Average Cost of Capital (WACC) and the Capital Asset Pricing Model (CAPM) play an important part of determining the cost of capital for firms. However, it needs to be noted that determining the appropriate inputs to these models requires the application of a significant amount of judgement. This practical interactive workshop will examine the most commonly adopted models and provide insights in their application in practice.
• Impacts of market turbulence on beta estimates and what data sources are available to help beta estimates
• Understanding the impact of liquidity on the cost of capital
• Understanding the relationship between discount rates, capitalisation rates and growth

Brendon Jones, Director – Corporate Finance, PricewaterhouseCoopers

12:30pm

Lunch

1:30pm

Accounting for assets during acquisition and merger

When a business is acquired the tangible (and intangible) assets need to be accounted for in the purchasing company balance sheet. Beca Valuations Ltd has completed a number of valuations of fixed assets related to company acquisition/merger. This session will:
• Provide a brief overview of new International Valuation standards,
• Discuss the differing treatment of assets by accounting standards depending upon their classification
• Differences between enterprise and fixed asset valuations
• Impairment issues and distressed sales
• Land valuation
• Case studies

Marvin Clough, Manager, Beca Valuataions Ltd
Nigel Hoskin, Senior Property Valuer, Beca Valuations Ltd

2:20pm

Afternoon Tea

2:40pm

Valuations under IFRS: Technical aspects

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
• Identifying intangible assets requiring valuation under IFRS
• Purchase price allocation and impairment testing under IFRS

Jackie Russell-Green, National Technical Manager, Staples Rodway

3:25pm

Concepts of Value: Fair value and fair market value

The Fong and Wong case has recently been before the courts, with the crux of the case resting on what is the fair market value for the shares in the business at the heart of the case.
• Differing interpretations of section 149 of the Companies Act, and how the Fong and Wong case challenges existing s149 interpretations
• IFRS definition of value, considering book values and liquidation values
• Issues around a director’s obligations to transact at fair value only

Eric Lucas, Director, PricewaterhouseCoopers

4:05pm

End of day one & networking drinks

Agenda: Day 2

9:00am

Welcome back from the Chair

Garth Ireland, Executive Director, Ireland Wallace & Associates

9:05am

Valuation Case Study: Early Stage Ventures (Case Study)

Many practitioners consider the most challenging enterprises to value are early stage and angel investments. Is the enterprise the next Microsoft or yet another doomed investment?
Early stage companies such as software startups are more prone to failure than more ‘traditional’ companies of a similar size. How should the greater risk of failure be considered when valuing early stage firms? This case study will focus on the practical valuation methods as well as theoretical approaches.
• Understanding early stage valuation
• Issues and solutions to the problems associated with early stage valuations
• The various valuation methods
• Typical multiples, returns and hurdle rates
• The venture capital method of valuation
The talk will consider real life examples.

Brendan Lyne, Principal and Director, Lyne Opinion Limited
Jeff Hoffmann, Assistant Manager, Grant Thornton

10:30am

Morning Tea

10:50am

Techniques for valuing Hybrid Securities

Hybrid securities are a group of securities that combine elements of both debt and equity, which are becoming an increasingly popular way of raising capital for an organisation. This session will look at the different techniques you can use to value these new hybrid securities.
• Valuing preference shares and convertible preference shares
• Using hybrid securities – motivations of the issuer and buyer
• Determining debt and capital structures
• Impact on WACC and EPS
• Balance sheet considerations

Wade Glass, Director, KGA Limited

11:30am

Enterprise Valuations and Equity Valuations – What’s the difference?

The requirement for business valuations most commonly occur in the SME environment --- in 92% of New Zealand generated business we are dealing with an SME. This session will examine the steps that are needed to convert an enterprise valuation to equity value or the value of the company’s shares.
• How do we recognise what debt affects the company’s value
• Shareholder loans – Debt or Equity?
• Contracts – such as non operating leases
• Surplus Assets –When do we add these to enterprise value?
• Working Capital requirements—surplus or shortfall?
• Do current salaries affect the current equity value?
• When to apply premiums or discounts
• Shareholder agreements – how these may affect value.
• Other adjustments
• Case studies

Mark Iles, Managing Director, Valuation One

12:15pm

Lunch

1:00pm

Performing and preparing for due diligence to help add value to the DD process

Due Diligence is the ‘process of confirming all the material facts in regards to a sale’, this includes (but isn’t limited to), analysing a company’s financial information, identifying implementation plans and costs, analysing current staff and company assets to ensure they are fit for purpose, and analysing the company’s strategic outlook. A sound due diligence process will enable the purchaser of a company to proceed with the knowledge that their potential new asset is a sound investment. This session will look at how you can prepare for the due diligence process, and how you can add value to the process.
• Preparing for the due diligence process – what do you need to do?
• Using wider economic and industry information sources
• Learning how the business actually operates
• Key indicators to look at when examining sales and performance data, and analysing the source and accuracy of this data
• Post acquisition implementation

Russell Moore, Partner, Grant Thornton

1:45pm

Practical aspects of business valuation: Family businesses

This session will take a closer look at the practical aspect of valuing family business’s.
as seen through the eyes of both sellers and buyers.
1) Selling your business: Preparation is the key
2) Parting with the family firm
3) Business growth by Acquisition

John Burnett, Managing Director, Investor Business Brokers Limited

2:30pm

Afternoon Tea

2.45

Valuing disruptive technologies

• Definitions and Trends
• Value and value drivers
• Applicable valuation techniques
• Practical Issues and problems
• Case studies

Jai Basrur, Director, Christmas Gouwland & Basrur

3.30pm

The continuing impact of the GFC: A lender viewpoint on NZ M&A markets

This session will examine the lenders viewpoint of debt structuring for M&A in a post GFC marketplace.
• Leading criteria in the current marketplace
• Alternatives to bank loans
• Continued economic uncertainty
• Observed Market Metrics

David Moore, Head of Specialised Lending, ANZ

Speaker has declined permission for his material to be online

4.15pm

Estate, succession and matrimonial division

Relationship property valuations represent a specialist application of valuation theory and practice combined with an in-depth understanding of legislation and relevant cases. This session will provide:
• Overview of valuation theory and practice for relationship property valuation of shares and businesses
• An update on relationship property legislation and case law.
• Critical issues in share and business valuations for relationship property purposes
• An update on S15 (economic disparity) theory and practice
• An update on implications of trusts on relationship property valuation

Tony Davis, Partner, Grant Thornton

5.00pm

Closing remarks from the Chair and end of conference

Sponsors/Partners

Interested in sponsorship?

There are some exclusive opportunities to promote your company, and its products and services, at this leading event. Contact the sponsorship team below to request a prospectus or discuss the options, or view more about event sponsorship.