All the courses are curated by a committee of BV professionals and academics. The courses are delivered either in-person or online-virtual or online-self enrollment.
This course covers Basic Concepts and Tools for International Valuation and is a one-day course provided to students who need to familiarize themselves with some of the basic ideas and vocabulary that form the foundation of business valuation analysis. This course is a preface to the four Principles of Valuation (POV) courses that form the core international business valuation curriculum of the International Institute of Business Valuers (iiBV).
The concept of value
The business appraisal process
Valuation mathematics
Accounting- measuring financial performance
Economic and industry analysis
The three approaches to value
International business valuation profession
This course is an introduction to the principles of business valuation. The purpose of this course is to introduce the novice valuation practitioner to an overview of the areas of analysis that are common to a comprehensive business valuation. The two overriding course concepts involve the evaluation of growth and risk. Qualitative risk is considered in company analysis and industry and macroeconomic analysis as well as financial ratio analysis. Quantitative risk is considered in the evaluation of financial risk and leverage. Subject company growth is assessed as part of the forecasting exercises as well as in the selection of market multiples in the market approach to value.
Two of the three approaches to valuation are covered in this course: the market approach and the asset approach. The third valuation approach, the income approach to value, is covered separately in iiBV 102.
iiBV 101 assumes that the student has had no prior formal training in business valuation. While a general business background will help the student grasp concepts more quickly, it is not necessary to successfully complete the material. This course is an introductory course to core business valuation theory and practice that addresses professional, practice, and theory issues.
Valuation Overview
Levels of Value
Engagement and Initial Analysis
Economic and Industry Analysis
Quantitative Company Analysis
Market Approach
Asset-Based (Cost) Approach
This course is an introduction to the income approach to value. It is assumed that the student has completed iiBV 101. The purpose of this course is to bring together the concepts and tools of iiBV 101 with the new material of the income approach. After completion of the course, the student will have been introduced to all three approaches to value. This course will also introduce some new concepts necessary to address the correlation and conclusion of value.
The objective of iiBV 102 is to enable students to master the fundamental theory and practice underlying the income approach to value. This basic body of valuation knowledge is common to all countries. After understanding the fundamentals of the income approach students should be capable of adapting the theory to the challenges and issues in specific markets and countries.
The Overview of the Income Approach
Financial Analysis and Forecasting
Appendix
Equity vs. Invested Capital Streams
Cost of Capital Theory
Capital Asset Pricing Model
Cost of Debt and the Weighted Average Cost of Capital
Correlation and Conclusion of Value
This is a capstone course which applies the theory learned in iiBV101 and 102 to a set of three case studies involved in the international auto parts manufacturing industry (two minor cases and one major case study). The subject companies are to be analyzed in a student group format.
The purpose of this course is to provide students with an opportunity to work through an actual set of case study materials that will follow all of the steps of a valuation engagement, from initial contact through the calculations and reconciled conclusion of value.
It is assumed that students have successfully completed IIBV 101 and IIBV 102 and are now ready to apply their knowledge to an actual case situation. The objective of IIBV103 is to assist students in developing their situational awareness of when and why to apply their valuation knowledge.
Reminders and a Look Forward
Assessing the Engagement
Quantitative Analysis
Industry & Economic Analysis
Currencies and Country Risk
Valuation Theory and Methods
Guideline Public Company Method
Guideline Transaction Method
Multi-Period DCF Method
Reconciliation of Indicated Values
The Valuation Report
The iiBV also offers the iiBV104 course as part of our program to assist professional obtain the ASA BV designation. The course includes instruction in five timely advanced valuation topics is presented. Approximately one half of the course is in valuation adjustments, including discounts for lack of marketability and lack of control, as well as control premiums.
Valuing Non-Control Interests – The Discount for Lack of Control
Valuing Non-Control Interests – The Discount for Lack of Marketability
Valuing Early-Stage Companies
The Valuation of Intangible Assets
Advanced International Cost of Capital
Saudi Valuation Market
The purpose of this course is to focus on the principles and IFRS issues arising when valuing intangible assets. This course is open to anyone, although it is recommended that students have knowledge of financial reporting and at least two years of business valuation experience, including some exposure to appraisals of intangible assets.
The objective of this course is to provide students with a comprehensive understanding of the valuation approaches to intangible assets.
As preparation for this course, students are encouraged to review both (a) the AICPA Practice Aid entitled “Assets Acquired to Be Used in Research and Development Activities”, Working Draft Released November 18, 201, and (b) The Appraisal Foundation, Best Practices for Valuations in Financial Reporting: Intangible Asset Working Group, “The Identification of Contributory Assets and the Calculation of Economic Rents”, issued May 31, 2010.
Valuation of Intangible Assets
Overview of Valuation of Intangibles
The Income Approach
The Relief from Royalty Method
The With-and-Without Method
Other Income Approach Methods
The Cost Approach
The Excess Earnings Method
The Market Approach
Selection of Methods
Remaining Useful Lives
Taxation and TAB
Financial Reporting
Further Study
This in-class course is designed to familiarize students with the legal and Small Medium Enterprise (SME) regulatory environment in Saudi Arabia. The course objectives include:
Sensitivity analysis and common errors in SME valuations
Introduction to Small and Medium-Sized Entities
Glossary of Acronyms
Sensitivity Analyses and Common Errors in Valuation
Legal Agreements
Calculating the Cost of Capital of SMEs
Managing Growth in an SME
Valuing Start-up Companies
Delivery Mode
Our core courses and non-ASA designation are delivered either in-class in-person or in-class online-virtual. In either case we provide the materials (readings, lecture notes, exams).
The IVSC regularly issues updates and revisions to international valuation standards (IVS). These revisions have important consequences for all professional business valuers, impacting the scope of their work and the content of their reports.
iiBV 201 is offered, as either a 1-day in-class course or an online self-study course, to help professional valuers understand and implement IVS in their client work.
The course leads the participants through the IVSC International Valuation Standards, and applies the standards to a comprehensive case-study of a complex international valuation assignment, following the logical steps of an actual business valuation engagement.
iiBV201 course materials include presentation slides, a student manual, a case study, and an exam.
The in-class format provides a peer-to-peer learning experience, facilitated by an experienced iiBV instructor, while the online course provides a time-effective self-study video format under the guidance of John Barton CPA, ASA.
iiBV is now offering an update to the iiBV 201 Standards and Ethics according to the IVSC’s 2020 revisions to IVS. It is a one-hour video also under the guidance of John Barton, who explains the relevant revision of the IVS 2020 standards you must learn.
iiBV is preparing a new update to the iiBV 201 Standards and Ethics according to the IVS 2022 that will be available in January 2022.
Learn what a minority interest is and its importance in business valuation. This course will give you a thorough understanding of the topic, covering major aspects of valuing minority interests: Measuring the Control Premium and Discount for Lack of Control and Measuring the Discount for Lack of Marketability (DLOM), and the different models used to quantify and support the discounts.
Introduction and Learning Objectives
Overview of Control Premium and Discount for Lack of Control
Example of Adjustments to cash flow for Non-Market Expenses
When should a Control Premium Be Considered
Common Assignment Requiring Minority Interest Valuations
Measuring the Control Premium
The Market Participant Acquisition Premium
Discount For Lack of Marketability (DLOM)
Black Scholes Option Model
Initial Public Offerings Studies
Restricted Stock Studies
Sanity Check
Review Questions
Early stage companies are challenging to value. Often with undeveloped or even no revenue these companies require a unique set of tools for a business valuer. Learn the common models used to deploy valuations in this area such as the Current Value Method, Option Pricing Model, and the Probability Weighted Expected Return Method (PWERM), along with their shortcomings.
Highlights of this course include:
Introduction
Definitions of Value
Stages of Company Development
Developing Rates of Return
Financing Early-Stage Companies
Estimating Value for Early-Stage Companies
Modeling Complex Capital Structures
Modeling Complex Capital Structures – Current Value Method (CVM)
The Option Pricing Model (OPM)
Probability Weighted Expected Return Method (PWERM)
Hybrid Model
Module Review questions
Current Value Method Case Study
opm Case Study
PWERM Case Study
Hybrid Model Case Study
Every valuation professional needs to be able to identify the differences between intangible and tangible assets. The first step is to define the major categories of intangible assets and understand the common models used to determine value. Often the purpose of intangible valuation is for financial reporting contexts, including purchase price allocation. Join Jon Barton in this fundamental eLearning course that builds on core valuation concepts with in depth lectures and Excel-based case studies.
Highlights of the course include:
Introduction
What is an intangible Asset and Why Do We Need to Value Them
Identification of intangible Assets
Documentation of Intangible Assets
Categories of Intangible Assets
Characteristics of Intangible Assets
MPEEM Valuation Methodology for Intangible Assets
Contributory Asset Charges (CAC) in MPEEM
Tax Amortization Benefit (TAB) in MPEEM
Greenfield Method and Relief from Royalty Method
Profit Split Method and Other Methods
Case Study – Wahmi Limited
Course Review and Questions
Every valuation professional needs to be able to identify the differences between intangible and tangible assets. The first step is to define the major categories of intangible assets and understand the common models used to determine value. Often the purpose of intangible valuation is for financial reporting contexts, including purchase price allocation. Join Jon Barton in this fundamental eLearning course that builds on core valuation concepts with in depth lectures and Excel-based case studies.
Highlights of the course include:
Introduction and Course Objectives
Review of CAPM and Inputs
Country Risk
Relative Volatility Model (RVM)
Erb-Harvey-Viskanta Country Credit Rating Model
Country Yield Spread Model
The Damodaran Model
Summary and Special Topics
Review Questions
The Black Scholes Option Model was first published in 1973, but the applicability in valuation is strong to this day. Join iiBV expert Andrew Strickland as he dissects and explains the various components of the models, and how they can be utilized in your valuation.
Highlights of the course include:
The Black Scholes Option Model
Introduction
The Language of Options
The Assumptions within the BS model
Some of the Intellectual Heritage behind the Model
The structure of an option model ignoring risk
Euler’s Constant or the Exponential Number and Natural Logarithms
Continuous Compounding and Discounting
Application to the BS Model
Volatility
Volatility and Returns
The Risk Free Rate and Dynamic Hedging
The “N” Function in the BS model
Volatility Applied to the Strike Price (d2)
Application to Private Companies
The Value of N(d1)
Accounting-based models have gained popularity over the years. These models have a long history dating back to 1961 when Edwards and Bell published a paper- The theory and measurement of business income where they extended the dividend discount model to derive the residual income model. The residual income model was subsequently further developed Peasnell (1982), Ohlson (1995) and Feltham and Ohlson (1995). Ohlson and Juettner-Nauroth (2005) modified the residual income valuation model to derive the Abnormal earnings Growth Valuation Model. This course introduces participants to the accounting-based valuation models and uses practical examples on how these models can be used to value firm equities.
Introduction to accounting-based valuation models
The residual income valuation model
Equity valuation using the residual income valuation model
Firm valuation sing the residual income valuation model
The abnormal earnings growth valuation model
Using accounting-based valuation model to infer the cost of equity
Accounting-based valuation models: further issues
The International valuation Standards Council (IVSC) is an independent, not for profit organisation committed to advancing quality in the valuation profession. Unlike the auditing and financial reporting professions, the valuation profession lacked valuation standards prior to the formation of the IVSC. The IVSC fills this gap in this prestigious profession. The IVSC is rigorously promoting its standards and judging from its member organisations, these standards will soon be at par with the IFRS Standards issued by the International Accounting Standards Board (IASB) and the ISA Standards issued by the International Auditing and Assurance Standards Board (IAASB). It is therefore crucially important for valuation professionals, professional accountants, tax practioners and auditors to fully understand and apply these standards. Using practical examples, this course introduces participants to all the IVSC’s standards that are currently in issue.
IVA 101 Scope of Work
IVS 102 Investigations and Compliance
IVS 103 Reporting
IVS 104 Bases of Value
IVS 105 Valuation Approaches and Methods
IVS 200 Business and Business Interests
IVS 210 Intangible Assets
IVS 300 Plant and Equipment
IVS 400 Real Property Interests
Development Property
IVS 500 Financial instruments
Banks constitute the cornerstone of economic and financial systems around the globe. Banking groups also constitute a significant proportion of the index market capitalisation in most countries. The 2007/2008 global financial crisis somehow rekindled the interest in bank valuation with several studies on bank valuation being undertaken. The valuation of banks and other financial services firms is a special and the most difficult topic in corporate finance. Banks in particular are very special, and this also makes their valuation a special exercise. In general, it is difficult to value a bank and the main reason that is usually cited for this difficulty is that banks are operationally more complex that non-banking firms. This complexity arises from the special nature of the banking firm’s operations which differentiate it from non-banking firms. Banks and other financial services firms differ from other firms in several respects, e.g., their capital structures are regulated, they are highly leveraged, banks trade in volatile securities, they are multi-businesses, and they are information opaque. For these reasons, the literature on bank valuation is very limited.
This course introduces participants to the methods that are widely used to value bank equity.
The general approach to the valuation of bank equity
The constant growth dividend discount model (DDM)
The P/E multiple- DDM hybrid model
The P/B multiple- DDM hybrid model
Other multiples that can be used to value bank equity
Bank equity valuation using the residual income valuation model
Bank equity valuation using the Abnormal Earnings Growth valuation model
On-line panel discussions of hot topics
Webinars are recorded and available for no charge on a variety of topics.
Each webinar features a panel of international subject matter experts and is under 60 minutes in length. We recently held the following webinars:
