BV204 Advanced Topics in Business Valuation

General Information

This OnDemand course provides students with convenient 24-7 online access to instructional modules via "My ASA Courses" immediately following registration. 

This course consists of:

• Narrated instructional modules;
• Downloadable course handout materials (PDF);
• Class assignments and exercises; and
• Practice tests.

Printed or hard copies are not provided to ASA OnDemand course registrants. Once the course OnDemand course and downloadable materials have been accessed, the course is no longer refundable.

The course and final exam must be completed within 90 days of purchase. The option to request an additional 90 day extension at education@appraisers.org is available (non-refundable fee is applicable). At any point throughout the duration of this OnDemand course, the student has the option to go back and log in to repeat and/or review any of the modules and/or practice tests. 

ASA-accredited members (AM, ASA, FASA) who would like to attend this class will receive a 50% discount. This discount will be automatically applied at checkout.

The final exam is multiple choice and securely administered online and remotely proctored. Additional final exam instructions will be provided within the course. 

Description

This capstone course applies the general valuation theory and principles learned in BV201, BV202 and BV203 and introduces the student to a variety of advanced valuation applications.  This course is presented in the following chapters (see more detail below): Pass-Through Entities; Intangible Assets; Non-US Cost of Capital; Fairness Opinions; Solvency Opinions; Value Allocation in a Complex Capital Structure; Employee Stock Ownership Plan Valuation; Valuation of Debt and Preferred Stock; Litigation Services; and Advancement and Accreditation.

• Chapter 1. Pass-Through Entities (2 hours) covers topics including (i) the economic and tax differences between pass-through entities and C corporations, (ii) the Tax Court cases that changed the landscape of pass-through entity valuation and (iii) the emerging valuation models used to quantify the value differential between pass-through entities and C corporations.
• Chapter 2. Intangible Assets (4 hours) covers topics including (i) definition, identification and categorization of intangible assets, (ii) introduction to applicable valuation methods, (iii) issues related to goodwill and (iv) the excess earnings method.
• Chapter 3. Non-US Cost of Capital (2 hours) covers topics including (i) defining and evaluating various non-US country specific risks and (ii) an overview of several quantification methods for non-US cost of capital, including advantages and disadvantages of each.
• Chapter 4. Fairness Opinions (1.5 hours) covers topics including (i) corporate directors’ duties, (ii) foundational issues of fairness opinions, (iii) underlying financial analyses and (iv) unique fairness-related issues.
• Chapter 5. Solvency Opinions (1.5 hours) covers topics including (i) underlying bankruptcy and fraudulent conveyance issues, (ii) foundational issues of solvency opinions, (iii) underlying financial analyses and (iv) unique solvency-related issues.
• Chapter 6. Value Allocation in a Complex Capital Structure (5 hours) covers topics including (i) fair value considerations, (ii) valuation methods for early-stage companies, (iii) relevant features of equity securities, (iv) primary equity allocation methods and (v) issues relating to estimating volatility.
• Chapter 7. Employee Stock Ownership Plan Valuation (1.5 hours) covers topics including (i) an introduction to ESOPs, (ii) various ESOP-specific engagement issues and (iii) the valuation impact of various ESOP-specific characteristics.
• Chapter 8. Valuation of Debt and Preferred Stock (1.5 hours) covers topics including (i) an overview of security characteristics affecting value, (ii) fundamentals of credit analysis and (iii) adjusting a market-derived yield for company-specific issues.
• Chapter 9. Litigation Services (1.5 hours) covers topics including (i) an overview of the U.S. judicial system, (ii) types of disputes requiring valuation evidence (iii) principals of evidence and testimony, (iv) the litigation process and (v) measures of economic damages and available remedies.
• Chapter 10. Advancement and Accreditation (1 hour) covers topics including (i) prerequisites for advancement, (ii) experience requirements, (iii) guidelines for submitting appraisal reports, (iv) a review of common report flaws and (v) recommendations for success.

Instructional Methods

Methods include narrated instructional modules, class assignments/exercises and practice tests.  

Course Audience

BV204 is one of four Principles of Valuation (POV) courses required for those seeking a credential with ASA.  In addition, this course is also of interest to accountants, attorneys, business brokers, investment bankers, Internal Revenue Service staff and the appraisal community at large who are involved or interested in the valuation of businesses.

Learning Level 

Fundamental 

Continuing Education and Contact Hours

28.8 ASA CE Instructional Hours and 3 Exam Hours | CPE hours are not awarded for this offering.

NASBA and Continuing Professional Education (CPE) Credit

ASA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.  State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit.  Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website www.learningmarket.org.

CPE Credit: Up to thirty (30) CPE credits in Specialized Knowledge
Program Level: Fundamental
Delivery Method: Only group-live courses are approved for CPE
Prerequisites: None
Advanced Preparation: None
Policies: ASA's Refund and Cancellation Policy and ASA's Complaint Resolution Policy 

Upon completion of this course, students will be able to:

• Identify the primary attributes of a pass-through entity (PTE);
• Understand how PTEs differ from C corporations:
• -corporate-level income taxes
• -shareholder-level taxes
• -shareholder tax basis
• Describe how PTEs have historically been valued by appraisers;
• Recognize the major Tax Court cases relating to valuation of pass-through entities (PTEs);
• Identify the major arguments for and against tax-affecting the earnings of PTEs;
• Identify the key factors affecting the value of PTEs;
• Understand how distribution policies affect the advantages/disadvantages of being a PTE shareholder; and
• Recognize the emerging theory regarding PTE Valuation and leading practitioner models:
• -Delaware Chancery Court Method;
• -Roger Grabowski Method;
• -Dan Van Vleet (SEAM) Method;
• -Chris Treharne Method;
• -Chris Mercer Method; and
• -Nancy Fannon Method.