Masterclass: Excellence in Valuation for Venture Capital, Private Equity, Impact Investing and Mergers & Acquisitions
*Terms & Conditions apply
Course Overview
Valuation is the single most important skill required in the world of private equity, venture capital, impact investing or listed investments, mergers and acquisitions, mutual funds, and corporate finance.
Effective valuation entails understanding the business, analyzing its cash flows, growth, risks, and inculcating the ability to attach reasonable numbers to these factors to find the intrinsic value of the business. However, most investment professionals do pricing and not valuation. In other words, they seek to relatively value a company or asset based on what others are paying for it. Accordingly, it has become increasingly important to be able to differentiate between intrinsic and relative valuation and be equipped to do both. The aim of the course is to help participants gain a strong understanding of valuation concepts, techniques, and dilemmas in a very clear fashion. The course further aims to equip participants with the necessary tools to conduct an intrinsic and relative valuation of any company or asset, at varying stages of its life. In doing so, the course covers four types of valuations, namely, relative valuation, DCF valuation, VC method of start-up valuation & real options valuation.
Complex concepts including the Capital Asset Pricing Model and its components like beta, levered beta, and unlevered beta, and their applicability to DCF valuation will be clearly explained. Valuation standards for unlisted equity shares will be discussed with participants. The suitability of the different methods of valuation and different formulae will be covered in the course.
The course is interactive and includes a live valuation exercise through a spreadsheet on Microsoft Excel. Exercises will be given for completion during the masterclass. The course is not intended to be a financial modeling class as the central focus will be on concepts and how to apply them practically. The crescendo of the course will be a practical live negotiation game, which will highlight the key issues that arise in arriving at an agreed valuation between two transacting parties.
Outcome and Benefits
The course will lay a strong foundation, enabling delegates to:
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Appreciate the difference between intrinsic valuation and relative valuation (pricing) through practical examples.
- Learn and understand basic concepts of DCF such as Enterprise Value (EV), Firm Value (FV), Free Cash Flow to Firm (FCFF), Free Cash Flow to Equity (FCFE), Weighted Average Cost of Capital (WACC), levered and unlevered beta (under the CAPM Model), Terminal Value (TV), through single and multi-stage models.
- Understand how relative multiples such as P/E, EV/EBITDA, P/B, and other revenue multiples are linked and justified by the fundamentals of the business.
- Practically understand DCF valuation and relative valuation through a live session on a spreadsheet on Microsoft Excel
- Learn how to value start-ups and young companies that may be losing money presently
- Learn how pre & post-money valuation is conducted and how you can negotiate for a higher valuation
- Understand valuation issues in M&A such as control premium, valuing synergies, and purchase price adjustments
Who Should Attend?
Venture Capital Fund Managers
Private Equity Fund Managers
Angel and Impact Investing and Fund Managers
Investment Officers
CFA, CA, CAIA & CS
Lawyers
Business Consultants
Commercial Bankers
Mutual Fund Managers
Start-up and Established Founders
Capital Market Regulators
Pension Fund Managers
Investment and Merchant Bankers
Wealth Managers
Course Director
Arvind has rubbed shoulders with the world's leading venture capital and private equity funds like KKR, Apax Partners, Carlyle, Sequoia, ACCEL Partners, and many others. Arvind has held a variety of positions, including Head of Capital Markets at the Asian Development Bank, Vice President, Citibank, and Senior Adviser, Citi. He was the President of the Indian Private Equity & Venture Capital Association, reporting to the CEO of KKR in India and to an Executive Committee including leading private equity and venture capital fund managers, such as Carlyle and the Canada Pension Plan.
He has structured and invested in over 30 private equity funds, including venture capital funds. He has worked on funds with LPs such as CalPERS, La Caisse de Depot et Placement du Quebec, the Prudential Insurance Company of America, and other large institutional investors. He has engineered several IPOs and has successfully negotiated an exit of a financial services startup with the CEO of a US-based MNC in New York.
He has promoted corporate governance in many funds, particularly those involving CalPERS. He has played a key role in the creation, structuring, and placement of a nearly $ 1 billion Infrastructure Fund. He has co-invested and partnered with some of the world's largest institutional investors including pension funds and sovereign wealth funds.
Arvind P. Mathur, CFA, FRM, has taught complex financial topics to fund managers and senior executives in Singapore and other countries for the past 12 years, including venture capital, private equity, M&A, valuation, and negotiation techniques. He has delivered a lecture on Asian buyouts at the Harvard Business School and has delivered more than 100 masterclasses in complex financial disciplines such as private equity, venture capital, and term sheet negotiations in several countries. He has also advised a start-up woman entrepreneur under a Goldman Sachs startup program.
Arvind has attended executive management courses at the Columbia School of Business and Cornell University, and an investment management workshop at the Harvard Business School.
Co-Faculty
Raghuveer Nath is a gold medalist (B.A., LL.B.) from Jindal Global Law School and has done his Master's in Law (BCL) from the University of Oxford. He has also completed the Advanced Valuation program at New York University. He has previously worked at Trilegal LLP as an Associate in the M&A and private equity team, where he was involved in deal structuring and conducting corporate due diligence.
He has previously taught M&A and taxation at the Jindal Global Law School. He has more than a decade's experience in investing in the equity and derivative markets and has conducted several workshops on valuation and financial literacy.
Certification Provided by PEPP
