Finance

‘The importance of business valuation is increasing’

March 12, 2018
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‘The social importance of a business valuer is increasing. An increasing number of transactions are taking place between companies and families. More and more organizations are becoming occupied with monitoring these types of processes,’ says Joy van der Veer, Project Director of the Executive Master of Business Valuation.

‘An example of what a business valuer does, is to supervise the transfer of a company to personnel or family members,’ continues Van der Veer. ‘The Tax Authority checks that this process runs in a businesslike manner. To verify this, the Tax Authority carefully assesses the transaction. Another example is if shareholders are in a dispute with each other. Then one needs to be bought out. Or consider a divorce. If the enterprise is in the estate, than that needs to be valued. Van der Veer: ‘The interests are becoming bigger, the profession of business valuer is gaining respect. A business valuer is being asked more often. Nowadays, the Tax Authority asks for company valuations made by a registered business valuer.’

Business valuation, isn't that still a rather young science?
‘We sometimes say jokingly that non-listed corporate finance is the youngest academic fruit on the tree of economic sciences. We are at the eve of further developing all kinds of application concepts. Good concepts for making better judgments. In the coming ten years, I expect a very strong development towards the further professionalism and detailing good and new models. I can confidently say that within our program, we have taken a lot of steps forwards. That will increase in intensity in the coming ten years. We are looking at large adjustments; we are still in the business of taking big steps. From a social viewpoint, you see the importance of business valuation increasing. Business valuation is becoming increasingly professionalized within the domains litigation, that is legal proceedings, and taxation. Techniques move forwards. Comparing where we stood ten years ago and where we now stand... science has not stood still. We have developed a significant number of techniques in the past ten years to give valuers better tools and to be able to come to better founded judgments. We at TIAS are proud of this Master. Developing models is starting to bear fruit. If a business valuer issues an opinion, you can rely on it.’

Why should I choose the TIAS MBV program?
‘The program we offer is focused on widely oriented financial advisors with a specialization in valuing non-listed companies. We place the emphasis particularly on non-listed companies. All aspects that play a part in a company's corporate finance are related to non-listed companies, so mainly SME. During the past years, value-based management has also received a lot of attention. We also train for being an advisor based on value-based management. Investment decisions play a part. Business topics, such as business modeling, play a part, but also risk analysis. And not least: value-based management, or how do I give a company the highest possible value and thus make it good for transfer?’

How does a participant in the Master of Business Valuation develop?
‘The people leave here with a very good basic knowledge. During the program, we offer a lot of theoretical concepts, taken together these form a sort of toolbox. Based on a proper synthesis, the participants learn to make the right choice in solving a practical problem. And that means that they obtain plenty of self-confidence in the subject matter.

What will your personal contribution be with the Master of Business Valuation?
‘I play an important role in supporting the participants towards the finishing line. The Master of Business Valuation overlaps about 70% with the Master in Finance. Subsequently, there is the specialization in business valuation, in which I support participants to the finishing line. Proper support is important; the participants have to learn to apply the new concepts within the theoretical domain plus the synthesis. We also have peer review workshops, in which participants present each other with problems. It is a beautiful platform, in which you notice that people are able to learn and choose the right theoretical concepts.’

TIAS is the School for Business and Society. How is that reflected in the program?
‘As far as ‘business’ is concerned, one looks more at hard core finance. With Society, it is all about the social usefulness of business valuers. You are training people to fulfill a role within that social thought process. Hard core computations with finance, in the program it is also often about the role you have as a business valuer within that social role. The role that we as business valuers have to play, want to play and will play within that social role.’

Executive Master of Business Administration

Our Master of Business Valuation program is a complete and flexible program with a broad approach, covering all aspects of corporate finance and business strategies, financial markets, business law and fiscal law. It deals with venture capital financing, initial public offerings, the valuation of non-listed firms, and the use of real options in valuation. In 14 months you will not only strengthen your core expertise, but you will also benefit from unique and profitable career opportunities.

 

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