Business Valuations- Income Approach

Welcome to myCPE

Reviewed

January, 2024

Learning Objectives

To identify the business valuation methodologies under the Income Approach.
To identify issues to look for in the income approach of determining the value of a business or subsidiary.
To recognize the reasons for performing a business valuation using the Income approach.
To review NACVA and AICPA standards.
To identify standards of the valuation set by state statute.
To differentiate valuation approaches and how they apply.

Course Description

The Business Valuation section presents guidance on performing valuations of closely held businesses and intangible assets, including an overview of the valuation process, the factors to consider before accepting the valuation engagement, and the various methods of valuation. Additionally, it includes tools, aids, and valuation approaches that would facilitate the business valuation process. The income approach is one of three valuation approaches.

This Online Continuing Education Webinar course is designed to be an introductory course on the Income Approach used in business valuations and business calculations.

In the income approach of business valuation, a business is valued at the present value of its future earnings or cash flows. These cash flows or future earnings are determined by projecting the earnings of the business and then adjusting them for changes in growth rates, taxes, cost structure, and others.

In this CPE webinar attendees will be exposed to various income approach valuation methodologies. Dr. Robert Minniti will discuss why the income approach is used, and when it is appropriate. He will also discuss the importance of maintaining professional standards so that the valuation opinion can be presented in a court of law. We will review the NACVA and AICPA standards.

This online continuing education finance webinar covers the following Key Topics:

Different Valuation Approaches
Advantages & Disadvantages of the Income Approach
When to use Income Approach
Special Considerations while using the Income Approach

Overview

Planning the engagement

6 mins
Income approach pros

16 mins
Discounted cash flow formula

26 mins
Capitalization of earnings benefit stream

49 mins
Summary discounted cash flow

64 mins
Capitalization of excess earnings

76 mins

Webinar Qualifies For

2 CPE Credit of Finance for Certified Public Accountants (CPA-US)
2 General Credit of Finance for Accountant/Bookkeeper/Tax Professionals
2 CPE Credit of Corporate Finance for Certified Management Accountants (CMA)
2 CPE Credit of Valuation approaches - Income Approach for Certified Valuation Analyst (CVA)
2 CPD Credit of Valuation approaches - Income Approach for Accredited in Business Valuation (ABV)
2 CPE Credit of Valuations for Chartered Global Management Accountants (CGMA)
2 CPD Credit of Asset valuation for Certified Financial Forensics (CFF)
2 CPE Credit of Business Valuation as a Measure of Damages for Master Analyst In Financial Forensics (MAFF)
2 CE Credit of Valuations for Chartered Life Underwriter (CLU)
2 CPE Credit of Valuation approaches - Income Approach for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA)
2 CPE Credit of Finance for Iowa Licensed Public Accountant (IA-LPA)
2 CPE Credit of Finance for Maine Licensed Public Accountant (ME-LPA)
2 CPE Credit of Finance for Delaware Licensed Public Accountant (DE-LPA)

About Instructor

Dr. Robert Minniti

President, Minniti CPA LLC

Dr. Minniti is the President and Owner of Minniti CPA, LLC. Dr. Minniti is a Certified Public Accountant, Certified Forensic Accountant, Certified Fraud Examiner, Certified Valuation Analyst, Certified in Financial Forensics, Master Analyst in Financial Forensics, Chartered Global Management Accountant, and is a licensed private investigator in the state of Arizona. Dr. Minniti received his doctoral degree in business administration from Walden University, received his MBA degree and Graduate Certificate in Accounting from DeVry University’s Keller Graduate School of Management, and received his Bachelor of Science in Business Administration degree from the University of Phoenix. Dr. Minniti taught graduate and undergraduate courses in forensic accounting at DeVry University, Grand Canyon University, Kaplan University, Northwestern University, and the University of Phoenix.

He designed graduate and undergraduate courses for Grand Canyon University, Northwestern University, and Anthem College. He is a writer and public speaker. He has experience in forensic accounting, fraud examinations, financial audits, internal audits, compliance audits, real estate valuations, business valuations, internal control development, business continuation planning, risk management, financial forecasting, and Sarbanes-Oxley compliance work. Dr. Minniti is an instructor teaching continuing professional education classes for the American Institute of Certified Public Accountants, Compliance Online, CPE Link/CCH . AccountingEd, Global Compliance Panel, Clear Law Institute, CPE Solutions, Canopy CPE, The Institute of Management Accountants, the National Association of Valuators and Analysts, the Association of Certified Fraud Examiners, the Institute of Internal Auditors, and various state CPA Societies.

Additional Information

Duration

2 Hours

Course Level

Basic

Instructional Method

QAS Self Study

Pre-requisites

None

Advance Preparation

None

FAQ’s

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NASBA APPROVED

MY-CPE LLC, 1600 Highway 6 south, suite 250, sugar land, TX, 77478

MY-CPE LLC (Sponsor Id#: 143597) 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 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.NASBARegistry.org.

Ratings and Review

4.5

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Joseph Horne, CPA (US)

I started out with some of the free myCPE offerings and they were much less geared toward advertisements than other platforms. I got a lot out of them, so I signed up for the unlimited program and the classes are great! I particularly like the valuation classes.

Amanda Stiefvater, CPA (US)

The instructor shared many different examples to illustrate the different income approaches to valuations. The handouts provided are a great reference to be able to use in the future.

Rory Oconnor, CPA (US), CPA Student

Informative at a high level on how to value a business or real estate asset and the details that have to be considered in models or value assumptions.