Business valuation - A practical guide to income approach - Workshop 2018

The income approach is one of three major valuation approaches, used by investment bankers, valuers, and surveyors. Its applications include business valuations, property valuations, intangible asset valuations, and financial instrument valuations. While the principles underlying the valuations of different assets are similar, some specific considerations or modifications must be made for each asset.

The quality of the valuation by adopting the income approach depends on the reasonableness of the underlying assumptions. And making the assumptions requires a combination of business and technical considerations. Appropriate use of the income approach can give insight into the assets/business for the users of the valuations. In this workshop, the income approach are discussed from a critical perspective so that the audiences can interpret the messages brought by the valuation in addition to the concluded values.

Key topics covered:

• Introduction to valuation methodologies
• Background of income approach
• Common methods under income approach
• Applications of income approach
• The considerations in the application of income approach
• Financial forecast
• Discount rate
• Terminal value
• Others
• Common issues in application
• Impairment assessment
• Internal assessment for projects
• Intangible asset valuation

Trainer profile:

Ferry Choy, Director, Flagship Appraisals and Consulting Limited

Ferry is an International Certified Valuation Specialist. He has handled more than hundreds of valuation cases. He provides valuation services for financial reporting, transactions and IPO purpose.

Learning objectives

• Highlight the major issues of a valuation adopting the income approach;
• Understand the business assumptions adopted in the valuation; and
• Identify the risk in the valuations

Audience

This workshop is suitable for corporate decision makers, senior management (C-suites), financial controller, investment-related positions, financial accountants, and anyone who are interested in business valuation.