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Facilitator Guide

Valuation

What’s covered

  • Valuation in legal practice 
  • The time value of money 
  • Definitions of value, including fair market value, book value, and liquidation value
  • Intrinsic valuation and discounted cash flow models
  • Relative valuation and comparables 
  • Financial modeling, including the basics of financial modeling, litigation and M&A examples

Before the session

Prepare the Attendees

Send the attendees an invitation for the session. Include this link, which has the videos and exercise they’ll need to prepare.

https://www.hotshotlegal.com/discussions/valuation/attendee

Prepare Yourself

Watch the videos and read the exercise so you’re familiar with the Hotshot material.

  • still frame from Valuation

    Course

    Valuation

    Valuation is one of the most fundamental concepts in corporate finance. This course describes the different measures of a company’s value, and the various techniques used to value businesses and their assets.

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    Exercise

    PDF

During the session

Part 1: Knowledge Check

Ask attendees these questions to ensure they understand the topic:

  • What’s book value? Liquidation value?
  • What’s intrinsic value and how does it differ from relative value?
  • What’s the basic approach for a discounted cash flow model? 
  • What are some problems with using a discounted cash flow model? 
  • Why are valuations using comparables (comps) used? 
  • What are some considerations when running a comps valuation?

Part 2: Group Exercise

Lead a group discussion based on the exercise. To encourage collaboration, divide the attendees into groups to discuss the exercise, then have a representative from each group summarize their views to the larger group. Call on people to share their thoughts and ask others to respond.

Tip for remote sessions: use your web conferencing system’s breakout room feature to divide people into groups.

Part 3: War Stories and Firm Specifics

Share your own experiences and guidance, including:

  • Anecdotes and war stories (e.g., about a near-disaster or a tough negotiation)
  • General practice tips (dos and don’ts)
  • Firm-specific guidance and practices

After the session

To continue their learning, attendees can check out related courses in Hotshot’s Accounting & Finance topic.