Hello MIM students. For those MIM students who have chosen to specialize in Finance including myself will be completing their Global Business Valuation and Financial Analysis course this upcoming Thursday.
The course focuses on financial analysis of the performance of the business as a whole or parts of the business. We have learned tools and techniques of financial statement analysis from the perspective of investors and creditors; develop models for determining and forecasting the profitability and financial position of the firm; business valuation techniques, emphasizing cash flow projections.
In order to value a company or a business unit, we must have an open mind, as there is no exact ‘right’ valuation because it is difficult to measure depending on the nature of business and market. Therefore in this class, we have used many valuation techniques such as discounted cash flow, relative valuation, and venture capital model in analyze cases to gain a better understanding what is the proper amount in estimating a firm value through the following settings: Initial Public Offering (IPO), Private Companies, Merger and Acquisition, and Start-up.
Business valuations are a critical tool in any business owners’ arsenal. It should be considered from the day the business concept originates through the life cycle of the business. Many business owners only consider a valuation when they are thinking about selling or buying a company. This is a mistake that owners can be deluded into believing. Having an accurate and timely valuation of your business can benefit a business in many ways including gaining an evaluation of the strengthens and weaknesses of the business and eventually providing a roadmap and vision for increasing the value of the firm.
Global Business Valuation and Financial Analysis course taught by Dave Nickel, Academic Director of Master of Science in Financial Analysis. He has over 20 years of corporate finance experience with particular emphasis in business valuation, M&A, financial planning, capital budgeting and project analysis. It is great to learn from his perspective on what other factors or techniques we need consider estimating a firm value. It is not just about the number we have calculated, there are many other factors we need consider into our assumption.