Using the GPC Method in your appraisal of smaller companies will give you a second viable method against which to compare your estimates using an income-approach method. Each acts as a check on the other. Besides reducing engagement risk, having two viable methods ("adjusted book value" is seldom a meaningful method) enhances the strength of your report and increases the credibility of your work.

If you're among the legion of valuation professionals who believes that the GPC method is not appropriate for smaller companies, think again. The instruction team of Mike Mattson and Warren Miller will guide you through a step-by-step process that will show you how to apply that method to smaller client companies.

Two of your “takeaways” from this course will be: (1) the proprietary Excel-based template that Mike and Warren have developed that will reduce the time it takes for you to deploy this method from 20 or 30 hours to 5 (or fewer) and (2) two weeks of post-course free access to the FetchXL database that populates the template.

Day 1—Introduction

• Why the GPC Method should be used
• Advantages and disadvantages of the method
• When to use and when not to use the method
• Sources of data
• "First Steps"
•  Initial reading/discussion of the 'Teaching Case' that will be used throughout Day 1 and Day 2
• Normalizing adjustments and implications for the level of value
• Creating a list of GPCs
• Understanding the nature of the client's business
• Building a "first cut" list of GPCs
• Moving from the first cut of GPC candidates through successive eliminations to the semifinal cut
• Creating the final cut (trading activity, business descriptions, EBITDA comparisons, EBIT comparisons)

Day 2—Mechanics

• Introducing the Excel GPC Template and Fetch XL commands. The template is your primary analytical tool for deploying the GPC method
• The coefficient of variation
• How to finesse the fundamental discount by using "outlier performance metrics"
• Determining which multiples to use
• Handling disparities in (a) size and (b) growth expectations
• How does your GPC result compare with estimates under (a) the income approach and (b) the cost approach?
• Sample write-up of the GPC Method

Day 3—Case Studies in Applying the GPC Method

The workshop concludes with a full day of case studies using the GPC method in four domains: construction, manufacturing, wholesale, and money management.

After attending the workshop, participants will be able to:

• Identify sources of GPC candidates
• Explain the strengths and weaknesses of valuing a GPC analysis in the context of a smaller client company
• List the steps in conducting a rigorous GPC analysis
• Differentiate between size-adjusted and non-size-adjusted multiples
• Explain how GPC analysis is related to other valuation approaches
• Provide a rationale for weighting two or more valuation multiples
• Conduct a GPC analysis, create size-adjusted multiples, reach an estimate of value, and explain the entire process in writing using simple English

Register Now! For program content, learning objectives, continuing professional education, and registration click here or call Member Services at (800) 677-2009.