ICASL and Amba to hold Valuation Boot Camp

Friday, 28 January 2011 03:08 - - {{hitsCtrl.values.hits}}

In keeping abreast with new developing techniques in today’s fast paced financial world, the Institute of Chartered Accountants of Sri Lanka (ICASL) together with Amba Research Lanka (Pvt) Ltd, will conduct a comprehensive two-day training programme designed to cover the best practices in cash flow-based and relative valuation techniques for equity securities.

The training programme titled Amba-ICASL Valuation Boot Camp scheduled to be held on 12-13 February 2011 will also include multiple hands-on case studies on valuing equity securities, including three Sri Lankan IPOs.

Specifically targeted at finance and capital market professionals, the two day long programme will afford participants extensive training on valuation concepts with case studies on valuing equity securities. Furthermore, during the case study sessions, the candidates will also be mentored by five members of the training panel to ensure a high level of individual attention is given to the limited number of participants.

This high-end training programme is specifically targeted at finance professionals who are required to conduct hands-on analysis and valuation of equity investments and senior finance managers in the corporate environment who wish to broaden their understanding of how external investors value their company.

The programme will be boosted by a well conversant training panel from Amba consisting of Senior Vice President, Global Head of Projects and Transitions, Chanakya Dissanayake (CFA); Vice President, Head of Knowledge Management at Amba Research Lanka, Aruna Perera (CFA); Vice President, Head of Training at Amba Research Lanka, Aidha Ahamat; and Senior Associate Vice President, Training and Development at Amba Research Lanka, Sarah Yusuf.

The course, which is designed for those with a basic to moderate knowledge in Corporate Finance and Accounting, will be limited to 25 participants while a working knowledge of MS Excel is a prerequisite.

Among the modules covered in the course are: Adjusting valuation multiples for relative differences in risk and growth expectations, Guidance on identifying appropriate peers, Adjusting enterprise value for non-operating assets and Case study on constructing a peer comp analysis and setting a target price.

The modules will also include: Arriving at a realistic cost of capital rates, Avoiding common errors in DCF valuation, Avoiding common errors in estimating terminal growth, Capturing reinvestment requirements to arrive at a defensible value, Capturing the value of non-operating investments when arriving at the final equity value, Dealing with tax holidays and tax concessions enjoyed by certain corporates and Case study on building a DCF valuation.

Quick discussions will also be held on Sum-of-the-parts valuation techniques, Private equity valuation and the use of past merger multiples when valuing controlling stakes in firms during the two day course, while Odel Plc, Laugfs Gas Ltd and PanAsian Power Ltd will be covered under the Sri Lankan IPO case studies module.