Business Valuation & Financial Litigation
Hybrid & Virtual Super Conference
Track One (Friday)
Inflation and Russia-Ukraine Conflict: Impact on Cost of Capital Assumptions
Friday, August 19, 2022 9:20 a.m. - 11:00 a.m. MTIn the aftermath of COVID-19, inflation has reached 40-year highs in the U.S. It may take some time for the Federal Reserve to get inflation under control, and there are questions on whether long-term inflation expectations have risen permanently. The Russia-Ukraine War is placing additional pressure on global prices. In this session, we will discuss:
- current economic conditions and recent updates to projected economic growth and inflation;
- impact of inflation on projected cash flows;
- selection of long-term growth rates in the terminal year;
- impact of inflation on cost of capital inputs; and
- highlights of industries that have been most impacted by the rising inflationary environment.
After completing this session attendees will be able to:
- Explain how inflation impacts the two major inputs in valuation (projected cash flows and the discount rate)
- Describe the current inflation situation in the U.S.
- Discuss why the current environment is not typical
- Describe why it is important to get inflation under control and the tools the Federal Reserve must use to control it
- Identify how the Ukraine conflict is aggravating inflation in the U.S., and which industries are most and least impacted
Total CPE: 2
Fields of Study: Economics: 1, Finance: 1
Program Level: Intermediate - Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.
Who Should Attend:
Valuation Professionals, Accounting Professionals, Corporate Development teams, CFOs, Controllers, Finance department leaders, Investment banking professionals, Private Equity, and Hedge Fund professionals.Prerequisites:
Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.Advanced Preparation:
None
Using Liquidity for Determining Illiquidity: Another Way to Justify Your DLOM
Friday, August 19, 2022 11:20 a.m. - 12:10 p.m. MTIn this session you will be provided a study of special dividends by public companies, to show that unforeseen liquidity increases value in both the short and long term. We will then review the impact that such information provides in showing the opposite - that a lack of liquidity causes a decrease in company value. It's a different and defensible means to arrive at a Discount for Lack of Marketability (DLOM).
- Explain illiquidity from recent examples of known public company liquidity
- Revise your explanation for a Lack of Marketability in valuation reports
- Use the provided discount reference tables for report writing purposes
Total CPE: 1
Fields of Study: Finance: 1
Program Level: Basic - Learning activity level most beneficial to individuals new to a skill or an attribute.
Who Should Attend:
Anyone providing business valuation reports with a Lack of Marketability section.Prerequisites:
Previous training or experience with the fundamentals of accounting, finance, economics, and business writing. These individuals are often at the staff or entry level in organizations, although such programs may also benefit a seasoned professional with limited exposure to the area.Advanced Preparation:
None
The growth rate for a firm's revenues is a critical and controversial input in valuation. It is important to identify the relevant drivers of growth for the industry and quantify the impact of changes in each driver on the overall growth rate. We present our analysis identifying the drivers and measuring their impact on individual industry groups.
- Identify growth drivers for specific industries
- Evaluate the incremental impact of each of these factors
- Create sustainable forecasts of growth rates based on macroeconomic data
Total CPE: 2
Fields of Study: Finance: 1, Statistics: 1
Program Level: Advanced - Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.
Who Should Attend:
Valuation and litigation professionals engaged in dispute resolution for tax, family law, and damages purposes.Prerequisites:
Good knowledge of topic and experience in the field. Advanced level programs are often appropriate for seasoned professionals within organizations; however, they may also be beneficial for other professionals with specialized knowledge in a subject area.Advanced Preparation:
None
How to Correct Your (and Opposition’s) Economic Benefit Stream
Friday, August 19, 2022 3:00 p.m. - 4:40 p.m. MTThis session will identify the seven tasks to:
- Ensure that your EBS is bulletproof
- Critique and correct opposition's EBS drivers
- Use WPN to persuade the trier of fact regarding your results
- Identify the self-explanatory tasks leading to a bulletproof EBS work product
- Illustrate the facile means by which to critique opposition's EBS alleged work product
Total CPE: 2
Fields of Study: Finance: 1, Statistics: 1
Program Level: Advanced - Learning activity level that builds on a basic program most appropriate for individuals with detailed knowledge in an area.
