Archive 2018-125: “New Best Practices” – the Income Approach
**Webinar 125: Live Broadcast Date: November 15, 2018**
Speaker: Jim Hitchner, CPA/ABV/CFF, ASA
In 2017 Jim Hitchner presented a new series titled “Best Practices: Business Valuation Methods.” What a difference a year makes. In this webinar, Jim presents “new” best practices based on new ways of thinking about risk analysis, alternative cost of capital data, new sources of long-term growth rates, exit multiples, and more. He covers what you need to know in relation to the income approach, including changes analysts will need to make as a result of the TCJA.
Webinar Outline – NEW Best Practices includes
- The effect of the Tax Cuts and Jobs Act on the income approach
- Alternative cost of equity capital data
- Supporting your WACC
- New sources of long-term growth rates
- A new look at risk analysis and adjustments
- What to do with undistributed cash
- The correct mid-year convention application for the CCF method
- Normalization adjustments
- A new look at weighting historical earnings
- A fresh look at minority vs. control cash flows
- Direct to equity vs. invested capital applications
- Depreciation, capital expenditures, and working capital assumptions
- Normalizing debt
- Sensitivity analyses and sanity checks
- A new look at exit multiples in a DCF model
The participant will learn:
- How to apply new best practices in the CCF and DCF methods.
- How to better defend your cost of capital calculations.
Please review our information on CPE credits, refund policies, and complaint resolution at www.valuationproducts.com/cpe It is the responsibility of CPA attendees to determine the CPE policies of their respective state boards of accountancy. (Note that archived webinars do not qualify for CPE credit.)
This downloadable archived webinar package is an interactive video of the webinar with the original webinar handouts.
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