Course Listing

Business Valuation in Practice
Last Updated Date:   4 July 2024


5 Units,  Semester 1

Course Description:
Business valuation is a key component of investor and corporate activities and is conducted for many purposes. In recent times, it has gained prominence because of the increase in mergers and acquisitions activities, arbitration and legal proceedings involving damages assessment and shareholder disputes, application of fair value measurements in financial reporting, and the increased emphasis on the role of intangible assets (and intellectual properties) as key value drivers in business.

As business valuation is deeply anchored in corporate activities, regulators have increasingly stepped up their presence and involvement in this practice area, particularly on matters relating to professionalism, and compliance with code and standards. In the conduct of business valuation, the International Valuation Standards (IVS) as developed by the International Valuation Standards Council (IVSC) is being applied by valuers in more than one hundred countries. IVSC is a global valuation standards setter and membership body that works to promote and grow the valuation profession worldwide. The Institute of Valuers and Appraisers of Singapore (IVAS) (under the auspices of the Accounting and Corporate Regulatory Authority (ACRA)), that certifies business valuers in Singapore, is a member of the IVSC. Business valuers certified by IVAS are designated as Chartered Valuers and Appraisers (CVA) and will need to comply with the IVS and the code of ethical principles issued by IVSC, when conducting their work in the marketplace.

The subject of business valuation arises frequently in the legal space, particularly in situations relating to insolvency and restructuring, litigation, and mergers and acquisitions. This course is developed for the students to acquire practical knowledge relating to business valuation that is applicable in these circumstances. It will provide the students with the first-hand knowledge of how business valuation is conducted in the “real world” in compliance with the IVS.

The course will commence with an introduction to the key concepts of accounting and finance relating to business valuation. It will then explore the valuation landscape, the role that business valuation plays in the marketplace and study the competences, role, and behaviour of business valuers. Students will learn about the valuation concepts, principles, terms, basis, premises, context, process and reporting requirements. An in-depth study of the various valuation approaches and methods, as stated in the IVS will be carried out. The focus will be on the application of the market, income, and cost (asset-based) approaches (and their respective methods and valuation parameters), in valuing business and equity. Last but not least, contemporary issues and challenges surrounding business valuation will also be covered. This includes matters such as the application of various discounts and premiums, rising importance of intangible assets (and intellectual properties) as key value drivers in business, and the consideration of ‘Environmental, Social and Governance (ESG)’ matters in valuation etc.

Course Convenor: Adjunct Prof Eric Teo

Co-teacher(s): NA

Course Codes: LL4527V / LL5527V / LL6527V / LLJ5527V

Contact Hours: 3 hour weekly seminars

Workload: 3 hours

Mode of Assessment: Group Assignment - 30%; Class participation - 20%; Mid Semester Quiz 1 – 25%; End of Semester Quiz 2 - 25%

Preclusions: LL4527/LL5527/LL6527/LLJ5527 Business Valuation in Practice

Prerequisites: NUS Compulsory Core Law Curriculum or common law equivalent.

Examination Date: Different Mode of Examination

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