In this valuation course module Financial Training Associates explains the role of debt free cash free (DFCF) values in the sale and purchase of companies. The material is of interest to finance, law, accounting, banking and other professionals dealing with the purchase and sale of businesses.
- What is debt free cash free? Why is it used in company valuation?
- How does DFCF compare to shares/ equity valuation?
- Why is DFCF used in business valuation?
- What happens in a sale and purchase agreement?
- One of the main valuation methods: relative/ comparable company valuation
- The use of EBITDA multiples in comparable valuation
- Relative valuation: applying it in practice
- Overview of another main valuation method: discounted cash flow or DCF valuation
- DFCF vs. enterprise value.
An 8 question multi-choice interactive valuation course quiz follows the material.
About CPD requirements
Most professionals who are in legal or accounting practice are required to complete a number of hours of CPD (continuing professional development) training per year, with CPD requirements determined by their professional body. Law and accounting professionals are encouraged to assume responsibility for their own development, and choose from a wide range of activities relevant to their responsibilities and training needs. In some cases, a portion of the CPD requirement can be met through self study. Depending on the CPD requirements of your professional body (e.g. ACCA, ICAEW or SRA*), you may be able to credit the time spent studying this valuation course material against your CPD obligations.
*ACCA = the Association of Chartered Certified Accountants, ICAEW = the Institute of Chartered Accountants in England and Wales, and SRA = the Solicitors’ Regulation Authority.
About the valuation course material
This valuation course material was written by a trainer from Financial Training Associates Ltd and has been published by ACCA (the Association of Chartered Certified Accountants – the largest international professional body for accountants) in their member magazine and on ACCA’s website. Further details regarding the full course are available here: valuation training.
Proceed with the valuation course
Please click to proceed with the company valuation course material.