Develop and apply a valuation model to maximize the economic benefit of a transaction
Properly identify the risks associated with valuation models and other deal forecasts
Reduce the amount of time absorbed by the valuation modeling process
February 24, 2023
Building a valuation model for M&A
- Understanding and comparing various valuation methodologies
- Understanding a discounted cash flow model
- Understanding valuation multiples
- Understanding the LBO valuation model used by PE firms
- Estimating growth rates and terminal value
- Methods for determining the discount rate
- Methods for selecting multiples
Governance of the valuation process
- Understanding risk premiums
- Stress-testing valuation models / identifying bias
- Applying appropriate valuations discounts
- Testing assumptions in diligence
- Understanding valuation ratios and drivers
- Using outside advisors such as quality-of-earnings and fairness opinions
- Validating and stress testing the valuation
Applying the valuation model
- Linking valuation modeling and bids/LOIs
- Differences applying valuation principles to public companies versus private companies
- Adapting valuation for venture-backed and high growth companies, distressed companies, and minority interests
- Using valuation sensitivity analysis to maintain pricing discipline
- Linking valuation to deal structure
- Knowledge capture / process refinement
- Avoiding common mistakes and pitfalls
Professor Donna Hitscherich is a senior lecturer of Finance, director of the Private Equity Program, and a Bernstein Faculty Leader at the Sanford C. Bernstein & Co. Center for Leadership and Ethics at Columbia Business School.
Prior to her position at Columbia, Professor Hitscherich had a career in investment banking, holding positions at CS First Boston, J.P. Morgan & Co. Inc., and Banc of America Securities. At J.P. Morgan, she helped found the takeover defense team and served as a senior member of the advisory review committee, which was responsible for all of the M&A fairness opinions issued by the company. As a managing director in the mergers and acquisitions group of Banc of America Securities, she was secretary of the firm’s fairness-opinion review committee and a major contributor to the firm’s training programs for managing directors and associates.
Prior to her investment banking career, Professor Hitscherich was a corporate lawyer at Skadden, Arps, Slate, Meagher & Flom.
Awarded Upon Completion
You will receive:
- A tombstone for your desk
- CLE and CPE credit
- Course certification for LinkedIn
"The M&A Valuation Master Class was terrific. The exchanges with the professor and participants was invaluable. The course material was very informative and I'll use in the future."
SVP - General Counsel, Graybar Electric Company
"Donna is a great instructor and is engaging. I learned a few things today and it was good to interact with peers in breakout rooms."
VP - Corporate Development, Sony
"I found the content and Donna exceptional... I would definitely take another M&A Master Class."
SVP - Global Commercial Operations, Quidel
"This M&A Master Class was interesting and relevant, supported by great discussions and an awesome instructor."
Senior Manager - Business Development, Pratt & Whitney
"This was a great and lively M&A Master Class. I learned a lot and was glad to have been able to participate."
Director of Transaction Liability Claims, Lockton Companies