Valuation of Cash

About the Course:

Cash is the Apple of many an eye. Hedge Fund manager David Einhorn is aggressively taking shareholder action to force Apple Computer to distribute much of its cash.

Also, the late Steve Jobs of Apple Computer indicated that he perceived Apple's cash position to be a strategic weapon when he said, "I am going to destroy Android...I'm willing to wage thermonuclear warfare. I will spend my last dying breath if I need to, and I will spend every penny of Apple's $40 billion in the bank, to right this wrong."

It is harder to perform valuations of companies--and interests in companies and partnerships--with respect to their cash balances than you might think. The following are some of the issues discussed during this session:

  • What is the thinking behind separating operating cash from non-operating cash?
  • How can an analyst determine how much operating cash a company should have?
  • Should calculations of operating cash be influenced by the stage of a company's development?
  • How can "wasting cash" be calculated?
  • What is the risk of a company being assessed with a tax on accumulated cash?
  • What is the significance of distinguishing between control and minority interests when valuing cash?
  • Are any adjustments in order with regard to excessive cash weighing down a company's performance?
  • Should a company's cash position be reviewed in connection with its debt load?
  • How can the betas of public companies be "infected" by varying relative cash balances?
  • To what extent should tax impact of distributing cash be taken into account?
  • What is the intersection between cash and a company specific risk premium?
  • How are American companies' valuations impacted when they maintain large cash balances outside of the USA?

Course Leader: Rod Burkert, CPA/ABV, CVA, MBA, Founder, Burkert Valuation Advisors, LLC

Rod performs appraisals for companies operating in a wide variety of industries. His assignments focus primarily on valuations for income/gift/estate situations, divorce proceedings, partner/ shareholder disputes, and commercial damage/economic loss matters. He also provides independent report review and project consulting services to assist attorneys and fellow practitioners with their engagements.

Rod has lectured on valuation matters for the AICPA, ASA, ALI-ABA, state CPA societies, chambers of commerce, estate planning councils, bar associations, law firms, and private banking groups. He has authored several valuation articles that have been accepted for publication in various professional journals and is a regular contributing author to Business Valuation Update, The Value Examiner, and Financial Valuation and Litigation Expert.

Prior to forming Burkert Valuation Advisors, Rod was a partner in and the Management Advisory Services Department Head at Reinsel & Company LLP, a Reading, Pennsylvania accounting and consulting firm, where he was in charge of the firm's business valuation practice. Rod was also employed in the audit and tax departments of Price Waterhouse in their Philadelphia, Pennsylvania and Brussels, Belgium offices, served in the operational analysis, financial reporting, and marketing analysis groups of Carpenter Technology, a Reading-based Fortune 500 specialty steel manufacturer, and a merger and acquisition analyst for two large regional banking institutions, Meridian Bank in Reading and Goldome in Buffalo, New York.

Course Length: Approx. 1.0 hours

$175 PER USER

Purchase Now:

Need help purchasing this course? Please contact Neomi Barazani at 609-919-1895 ext. 100 or at info@bdacademy.com.