The Romanian INSEAD Alumni Association is proud to bring to Bucharest the world renowned educator Kevin Kaiser, Professor of Management Practice at INSEAD, to present his 3-day “Advanced Valuation Programme”. Participan
Professor Kaiser will conduct his 3 day programme on Advanced Valuation in Bucharest, 11-13 October 2016. The programme will cover 3 general themes:
- Why is value, and thus also valuation so important and relevant in the world of business?
- How to perform high quality and robust valuation;
- How to explain the valuation to ensure it is actually used in decision-making.
In many companies which claim to use valuation for decision-making, it has been noted that very often factors other than value-impact influence the decision process. In many cases, this is due to a lack of understanding of why the valuation is being performed and the critical importance of value creation.
To improve the effectiveness of the valuation process, we will ensure that participants are able to both do a quality valuation, as well as have the deeper understanding of the process necessary to be able to persuade decision-makers to have confidence and to rely on the output of the valuation for driving decisions.
Conceptually, the Programme will focus on the two core elements of any valuation:
- How do we forecast the expected future free cash flows?
- How do we estimate the opportunity cost of capital to be used to discount these forecasted cash flows to estimate the value?
Profile of the attendees:
Participants are typically people involved in investment decision-making or responsible for corporate finance strategy, bankers involved in advising corporate clients; corporate finance consultants/accountants; M&A professionals; private equity professionals.
Participants should have valuation experience and be familiar with basic valuation concepts, such free cash flows and the costs of capital, the Capital Asset Pricing Model and/ or the Arbitrage Pricing Theory.
The Programme will be taught in English and participants should be able to exchange complex views, listen and learn in English.
The event has also a charity component directing the additional revenues from the course to the “THE ROMANIAN FRIENDS OF INSEAD SCHOLARSHIP FUND”.
The fund lunched in 2014, is dedicated to supporting the best Romanian talented young leaders who want to make a difference in the world and would like to advance their leadership skills by attending one of INSEAD’s leading global programmes, which propelled INSEAD into the leading business schools of the world with its MBA and EMBA programmes.
Should you be interested to have your company supporting this unique event, please contact us at raluca-georgiana.turchina@
In case you would like to buy the tickets through bank transfer or need invoice for the ones bought through this website please contact raluca-georgiana.turchina@
Schedule:
Day 1
Professor: Kevin Kaiser
Pre-reading: Kaiser and Young, The Blue Line Imperative, chapters 1, 2 & 3
Content of the Session
• Building Blocks of a DCF Valuation
o The Value creation imperative
o “Pricing” methods versus “Valuation” methods
o What is value and why do we care?
o Identifying the Opportunity Cost of Capital (OCC) – the ultimate benchmark which distinguishes all value creation from value destruction
• Building Blocks of a DCF Valuation
o Introduction to Blue Line Management
Content of the Session
• Valuation Fundamentals: Opportunity Cost of Capital
o Introductory discussion on the opportunity cost of capital
• Valuation Fundamentals: Distinguishing Price and Value
o Case – “VHSS : Valuing Ships”
• Valuation Fundamentals
o Identifying and calculating value drivers
o Introduction to historical analysis
• Group preparation: “The Divestiture of Cable & Wireless HKT Limited” – Historical analysis
Day 2
Pre-reading: Kaiser and Young, The Blue Line Imperative, chapter 4 and 11
Content of the Session
• Class discussion: "The Divestiture of Cable & Wireless HKT Limited"
• Building a Cash Flow Model – I
o Performing historical analysis – Performing historical analysis: how to use past financial statements to estimate and interpret the important economic indicators (ROIC, EVA, profit margins, capital turnover ratios, etc.)
o Drawing the connections between, continued:
Industry Structure → Competitive Landscape → Corporate Strategy ↔ Business Planning ↔ Cash Flow Model ↔ Valuation
Content of the Session
• Building a Cash Flow Model – II
o What are the issues with multiples?
• Building a Cash Flow Model – III
o Forecasting Cash Flows
o “Best-practice” Excel model building
• Group preparation: “The Divestiture of Cable & Wireless HKT Limited” – Forecasting
Day 3
Pre-reading: Kaiser and Young, The Blue Line Imperative, chapter 11
Content of the Session
• Class discussion: "The Divestiture of Cable & Wireless HKT Limited"
• Revisiting the forecasting exercise
o Cash flows reflect expectations, discount rate reflects risk
o Continuing value – Understanding and interpreting the mechanics of the continuing value formula and the implications of economic logic and evidence on the use of this formula
Content of the Session
• Discount Rate/Opportunity Cost of Capital I
o Standard assumptions and their sources
o Risk-free rate
o Incorporating risk: Theoretical basis for asset pricing models (CAPM, APT)
o Diversifiable versus non-diversifiable risk
o Theoretical basis for asset pricing models (CAPM, APT)
o Diversifiable versus non-diversifiable risk
o Adjusted present value methodology
• Group preparation: “The Divestiture of Cable & Wireless HKT Limited” – Final
• Class discussion: “The Divestiture of Cable & Wireless HKT Limited” – Final