Terminal Value Triumph: Mastering Diverse Approaches to Enduring Valuation

Welcome to myCPE

Published

March, 2024

Learning Objectives

To explain the various approaches to calculating Terminal Value, including the Gordon Growth Model, Exit Multiple Method, and H-Model.
To discuss the underlying principles, assumptions, and applications of each approach in valuation processes.
To develop analytical finesse in choosing and applying the most suitable approach based on specific valuation contexts.
To engage in hands-on exercises and case studies to solidify understanding and application of these Terminal Value approaches.

Course Description

Terminal value (TV) represents the appraisal of an asset, business, or project beyond the projected timeframe for estimating future cash flows.

It presupposes that a business will sustain a constant growth rate indefinitely following the forecast period. Notably, terminal value often constitutes a substantial portion of the overall assessed value. In this CPE course participants will delve deeply into the intricacies of Terminal Value calculation, acquiring proficiency in diverse methodologies such as the Gordon Growth Model/Perpetuity Growth Model, Exit Multiple Method, and H-Model.

Engaging in analytical explorations, participants will immerse themselves in the subject matter, fostering the development of finesse in the selection and application of the most relevant Terminal Value approach tailored to the complexities of specific valuation scenarios. To enrich the learning trajectory, the course seamlessly integrates a variety of hands-on exercises and insightful case studies. These practical components are strategically designed to nurture and reinforce participants' understanding of Terminal Value approaches, cultivating the confidence and expertise essential for their successful application in real-world valuation endeavors.

Major Topics Covered:

Components of Terminal Value
The Gordon Growth Model
The Exit Multiple Method
The H - Model
Comparative Analysis and Selection Criteria

Join this CPE Valuation Course it is meticulously crafted to unveil the nuances of each approach, providing clarity on the fundamental principles, assumptions, and distinctive applications that govern their utilization in the valuation process.

Overview

Components of terminal value

4 mins
Introduction to the gordon growth model

20 mins
Advantages and Limitations

33 mins
Explanation of exit multiples and their sources

48 mins
Introduction to the H-model

64 mins
Adjusting for risk and variability

76 mins
Industry-specific considerations

92 mins
Handling uncertainty and volatility in terminal value calculations

102 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 CPD Credit of Finance for CPA in Canada
2 CPE Credit of Corporate Finance for Certified Management Accountants (CMA)
2 CPE Credit of Finance for Certified Valuation Analyst (CVA)
2 CPD Credit of Finance for Accredited in Business Valuation (ABV)
2 CPE Credit of Valuations for Chartered Global Management Accountants (CGMA)
2 CPD Credit of Financial Reporting for Certified Financial Forensics (CFF)
2 CPD Credit for Association of Chartered Certified Accountants (ACCA)
2 CPD Credit for Chartered Accountant - ICAEW
2 CE Credit of Financial Planning and Analysis for Certified Treasury Professional (CTP)
2 CPE Credit of Business Valuation as a Measure of Damages for Master Analyst In Financial Forensics (MAFF)
2 CE Credit of General finance principles and financial concepts for Certified FP&A Professional (FP&A)
2 CPE Credit of Finance for Certified Business Appraiser (CBA)/Master Certified Business Appraiser (MCBA)
2 CPD Credit of Valuation and Risk Models for Financial Risk Manager (FRM)
2 CPE Credit of Finance for Iowa Licensed Public Accountant (IA-LPA)
2 CPD Credit for Chartered Accountants - Scotland
2 CPD Credit for CPA - Ireland
2 CPD Credit for Chartered Accountants - Ireland (CAI)
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

Gregory Holzel

Owner, GT Financials PLLC

Gregory Holzel is an accomplished accountant and Certified Public Accountant (CPA) with expertise in financial analysis, auditing, and budgeting. He resides at 15 Red Maple Drive in Etters, PA 17319 and can be contacted at gregory.holzel@outlook.com or 717-608-0368.

Education: Gregory holds an MBA with a concentration in Finance, graduating magna cum laude from Shippensburg University in May 2023. During his studies, he achieved a remarkable GPA of 3.82. Prior to his MBA, he completed a Bachelor's degree in Accounting at Central Penn College in Summerdale, PA, graduating magna cum laude in 2021. Gregory also served as a tutor during his undergraduate studies.

Experience: Gregory has gained valuable experience in the accounting field through various roles. As a Senior Auditor at S.R. Snodgrass, P.C. in King of Prussia, PA from 2021 to 2023, he audited financial statements and provided assurance services for financial institutions and employee benefit plans. His responsibilities included preparing audit work papers, documenting audit tests and findings, and preparing reports for management review. In June 2023, Gregory launched GT Financials PLLC, a company that offers accounting and financial services to small businesses.

Before transitioning into the role of a Senior Auditor, Gregory served as a Senior Staff Accountant at Fleet Repair Solutions in Grantville, PA, from 2018 to 2021. In this position, he conducted detailed financial analysis, prepared financial statements, and played a vital role in budget preparation and month-end closing. Gregory was also responsible for designing, implementing, and maintaining accounting policies, procedures, and controls.

Certification: Gregory Holzel became a Certified Public Accountant (CPA) in 2023, further demonstrating his commitment to professionalism and expertise in the field.

Skills: With a strong background in accounting and finance, Gregory possesses a wide range of skills. His areas of expertise include financial planning and analysis (FP&A), financial reporting, payroll, auditing, budget preparation, variance analysis, and cost accounting. He is proficient in utilizing tools such as QuickBooks desktop and QuickBooks online (QBO), SQL, and Microsoft Office, particularly Excel at an expert level. Additionally, Gregory has experience working with SAP and is familiar with nonprofit accounting, public accounting, and private industry practices.

Gregory Holzel is a dedicated and knowledgeable professional who consistently strives for excellence in the field of accounting. His combination of education, certifications, and practical experience makes him a valuable asset in any accounting or finance role.

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

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Owen Mccafferty, CPA (US)

Terminal Value courses need to be more frequent. As a survey course of terminal value in discounted cash flow methods, I found the speaker and coursework to be excellent. The only constructive service comment that I can make is that the material is too detailed for the time line. Breaking up the methods into a series on one hour courses would be beneficial. Also, I felt like I was the only one on the presentation. I answered one of the polling questions wrong to see if the 100% same answer would be replicated on the poll tally. It was. The speaker was excellent but I fear he had a very small audience of one..