Subscribe to RSS feedLast night was the second installment for 2011 of the CFO Network seminar events, held in conjunction with the Institute of Chartered Accountants.
About 30 guests attended the Institute’s headquarters on Erskine Street in Sydney for some networking with fellow CFOs and two presentations on valuations.
Valuation is a key area for CFOs to understand, keep up to date with the latest trends and also be across the various valuation methodologies, particularly when we don’t touch it every day.
There’s no doubt we’re operating in interesting times. We’ve seen a lot of changes occur in the market over the last few years, bank lending is more challenging, raising capital across various industries is tricky and accounting standards are more stringent. Because of this valuing businesses and goodwill has become more difficult and complex.
The event’s speakers were both highly regarded experts in their fields and extremely knowledgeable in the area of business and commercial valuations. The seminar bought together two different aspects of valuations to give a complete picture on how the current market is influencing valuations.
Wayne Lonergan from Lonergan Edwards & Associates delivered an interesting presentation on valuations trends with particular emphasis on public companies that have to undertake annual impairment testing of goodwill as a result of business combination under IFRS methodology. Wayne also covered the trends in enterprise value, multiples and discount rates. (See Wayne's presentation slides below)
Phil McCabe, the head of Acquisition Finance & Advisory for Commonwealth Bank Corporate Financial Services led the group through a presentation on valuations from a financier’s perspective, with particular reference to goodwill.
Phil explained what a financier focuses on to determine private company valuation as well as how understanding value drivers reconciles with an understanding risk drivers and risk mitigants. He went through macro drivers, company specific drivers, risk analysis and the differences between equity investors and a financier’s approach to valuations.
The CFO Network is an initiative of Azure Group to bring together CFOs working primarily with SMEs in order to share ideas, experiences and to connect with like minded professionals.
As well as holding quarterly seminars with the ICAA, the CFO Network also has a Linked In group, to enable members to interact, connect and share ideas online.
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