Private Company Valuation
A practical framework for valuing businesses without public market data
Overview
This course introduces participants to the valuation of privately held companies, where limited disclosures, non-standardized reporting, and the absence of market quotes require a disciplined and adaptable approach. Participants will learn how to normalize financials, assess risk, select appropriate multiples, and apply intrinsic and market-based valuation methods in environments without public-company transparency.
- Normalizing financial statements
- Adjusting for owner compensation, related-party items, and one-time adjustments
- Working capital and capital expenditure considerations
- Selecting valuation methodologies for private companies
- Market approaches using trading and transaction comparables
- Cashflow approaches including DCF and LBO
- When asset-based valuation is appropriate
- Developing and supporting key assumptions
- Discount rates, risk premiums, and company-specific risk adjustments
- Selecting and sensitizing valuation multiples
- Reconciling enterprise and equity value in a private-company context
- Treatment of debt, excess assets, and non-operating items
- Minority vs. control valuations and impact on pricing
- Communicating valuation outcomes
- Triangulating across valuation methods
- Building a private-company valuation football field