Archive 2010-27: Valuing a Bus., Measuring Risk, Assess Strategy




Archive Webinar 2010-27: Valuing a Business, Measuring Risk, and Assessing Strategy: You Can’t Do One and Not the Others

presented by
Warren D. Miller, CFA, CPA, ASA

Webinar 27 Broadcast Date: Wednesday, July 28, 2010

Webinar Overview:

  • The overlap among valuation, risk, and competitive strategy
  • Valuation Roadblock #1 – from microeconomics
  • Valuation Roadblock #2 – from financial economics
  • What the published research says about external vs. internal sources of risk
  • A fix for Roadblocks #1 and #2: the trilevel unsystematic-risk framework
    • macroenvironment
    • domain (industry or strategic group)
    • company (SPARC)
    • risk-premium ranges for each level in the trilevel framework
  • Small and Medium-sized Business (SMB) Archetypes in Competitive Strategy
    • Industry-wide
      • Exploiter
      • Explorer
    • Strategic group
      • Extender
      • Experimenter
    • The place not to be: Equivocator (a.k.a. Stuck in the Middle)
    • Does your client’s SPARC profile fit its resources, capabilities, and beliefs?
  • Aberrant metrics in valuing SMBs
    • Construct your own industry composite from guideline public companies
    • Compare and contrast
    • Focus on the metrics that are well above or well below those of the composite
    • Be sure to examine metrics that are essential in the domain
      • Distribution: inventory turn, DSO, productivity
      • Manufacturing: inventory turnover, gross margin, cash-conversion cycle
    • Uncover the causes with SPARC during on-site interviews
  • Quantifying unsystematic risk electronically
  • Situations where combining valuation and a value map into one engagement makes sense

Learning Objectives:

  • The participant will learn how valuation, risk, and strategy are inextricably intertwined
  • The participant will learn how “strategic groups” redefine the assessment of industry risk
  • The participant will learn the “five E’s of competitive strategy”…and the one that most small and medium-sized businesses should probably be
  • The participant will learn how to use the SPARC Framework to uncover cause-and-effect relationships and gauge risk at the company level
  • The participant will learn how to spot opportunities for lucrative add-on consulting engagements

Included in this downloadable package are:

  • Audio/Video file
  • Webinar transcript
  • Original Webinar handouts

The archived webinar package is an Adobe Presenter PDF file that allows you to view the video of the webinar with the synced audio so that you see the presentation just as it was presented “live.” The Presenter format also allows for easy navigation through the webinar so you can quickly go to a specific section in the presentation. The handout materials are included in the file. To view the Webinar Presenter file, you must have Adobe Reader software version 9 or higher. You can download the free current version of Adobe Reader at Please note that CPE is only available for live webinar broadcasts.

Additional information

Weight 0.00 oz