Valuing the Enterprise – Asset Light Businesses

The aim of this course is to provide participants with a framework to analyse and value asset light businesses.

We will explore the nature of intangible expenditure and invisible capital and how they can lead to the wrong conclusions being formed when using market data systems and traditional valuation metrics.

Suitability

For individuals new to the financial markets with a basic understanding of accounting and valuation, or more experienced analysts wishing to go into more detail.

Learning Outcomes

At the end of this course participants should:

Understand the growth in asset-light businesses
Recognise the challenges in using traditional, accounting-based, valuation frameworks in asset light businesses
Develop a critical awareness of valuation approaches to growth
Understand off-balance sheet assets, including leasing and assets as a service, and the sensitivity of earnings to off-balance sheet assets
Understand the nature of marketing & brand building, including IFRS/US GAAP accounting
Apply solutions to achieve comparable valuation
Understand the nature of R&D investment and the IFRS/US GAAP accounting framework, including after acquisitions
Identify the types of intellectual property, intangible and hidden capital assets

Course Content

Challenging the notion that tangible capital is necessary to build a valuable business
Identifying categories of intellectual or invisible capital
Exploring and applying tangible and intangible asset accounting
R&D accounting
Acquiring R&D assets
Solutions to the comparability problem
Accounting for brands
The competitive advantage period of a brand
Acquiring brands
Human capital training and know-how as assets
Off-balance sheet assets
Leasing
IFRS and GAAP accounting + alternatives for capitalisation
Valuing growth
PEG ratios
P/E, DCF and Gordon’s Growth Model revisited
Market price implied growth rates

100%

of our clients would recommend Alpha to a colleague or peer

90%

of a cohort was promoted within 2 years after participating in an Alpha course.

96%

of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

Knowledge Exchange Evangelists

We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

Generation Proof

Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.