While the valuation of a business is often complex and challenging, trainee accountants should have basic exposure to the practical application of the concepts. This is an essential skill for business leaders to quantify shareholder value.

Who is this Toolkit for?

The Business Valuation Techniques Toolkit is designed to offer young, upcoming accountants and auditors a solid foundation in the business valuation process. This toolkit provides a clear and practical introduction to basic business valuation techniques, ideal for those still studying or starting their journey toward becoming professional accountants and auditors.

The content is structured to offer a step-by-step approach with clear, easy-to-follow examples, laying the groundwork for more complex applications in the future. It is particularly targeted at trainees enrolled in the SAICA CA2025 Training Program, but it also benefits trainees from other programs such as SAIPA and CIMA.

Key Features:

• Level 1: Simple contexts and straightforward situations (Case studies 1-11)

• Level 2: Simple contexts with specific, limited complexity (Case studies 12-14)

Please note that, in line with the SAICA CA2025 Training Program guidelines, this toolkit serves as a supplementary resource. While it will support your training, it is not the sole method for developing proficiency. Responsibility for ensuring that simulations and assessments are fit-for-purpose rests with the training office and cannot be delegated to a third party.

All simulated activities should be documented in the Integrated Exposure Plan and linked to relevant technical competencies. The trainee will need to complete a Learning Outcome Review (LOR) that outlines the competencies gained and evidence of learning outcomes from completing the simulation.

We hope this toolkit serves as a valuable tool in trainees' professional development, offering essential insights and practical experience as they progress in their careers.

What's inside the DIY-Toolkit?

• Delegate Manual
• POE Excel book with case studies
• Trainee Declaration letter
• Trainee Self-Assessment Checklist
• Suggested solutions / marksheet for the Reviewer / Overall Evaluator
• Assessment report template for the Reviewer / Overall Evaluator
• Optional marking (assessment) request: have the PoE assessed by a certified SAICA Assessor at an additional fee

Topics included in this tool:

• Due Diligence
• Negotiations
• Concept of Value
• P/E Ratio
• Gordon Growth Model/Framework
• Various Valuation techniques, including Discounted Cash Flow Method, Net Asset valuation, Income Multiple, Income Capitalisation, etc.
  

Duration to complete the PoE file with case studies:

1 Full Day to work through online content

1 Full Day to complete the case studies