Business Valuation Simulation

Step into the role of a top-tier valuation advisor. In this intense, hands-on simulation, you will navigate the complexities of valuing a real-world company under conditions of uncertainty, market volatility, and strategic crossroads.

Business Valuation Simulation Overview

The Business Valuation Simulation plunges participants into a dynamic, week-long case study of a publicly-traded company facing a pivotal event: a potential acquisition, a major restructuring, or a new capital raise. Participants work in competing advisory teams to build a comprehensive valuation model from the ground up.

They must integrate financial statement analysis, industry research, and strategic assessment to choose and apply the most appropriate valuation methodologies. The simulation introduces real-time market shocks, new competitor data, and management surprises, forcing teams to adjust their models and assumptions on the fly.

The culmination is a high-stakes boardroom presentation where teams must justify their valuation range and negotiate based on their analysis. Go beyond textbook formulas to defend your assumptions, negotiate with stakeholders, and deliver a credible valuation that withstands scrutiny.

Business Valuation Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Intrinsic vs. Relative Value
Discounted Cash Flow Analysis
Market Multiples Analysis
Terminal Value Calculation
Cost of Capital
Scenario and Sensitivity Analysis
Premium and Discount Analysis
Valuation Synthesis and Football Field Analysis

Gameflow

What Participants Do

In the simulation, participants will:

Analyze detailed financial statements, management projections, and industry reports.
Build a dynamic, integrated financial model in Excel to forecast company performance.
Calculate value using minimum three distinct methodologies.
Defend critical assumptions in peer debates.
Respond to market-moving news flashes that impact their valuation model inputs.
Create a professional "Valuation Opinion" report and a concise executive summary.
Present and negotiate their valuation findings to a simulated Board of Directors or client.
Critique the valuation models and assumptions of competing teams.

Learning Objectives

By the end of the simulation, participants will be able to:

Construct a comprehensive, three-statement financial model for valuation purposes.
Apply core valuation methodologies correctly and understand the rationale behind each.
Develop a defensible weighted average cost of capital estimate.
Synthesize multiple valuation outputs into a coherent "football field" to determine a final value range.
Perform sensitivity and scenario analysis to stress-test valuation assumptions.
Communicate complex valuation conclusions effectively to a non-technical audience.
Negotiate value based on analytical work, not just intuition.
Understand how market events and new information immediately impact a company's valuation.

How the Business Valuation Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Team Formation and Case Launch Participants are divided into competing valuation advisory firms. Each team receives the core case materials—company financials, industry overview, and the strategic dilemma.

2. Research and Model Building Teams analyze data, make strategic and financial assumptions, and build their valuation models in Excel. Instructors act as management, providing additional data upon request.

3. Market Shocks and Updates Simulation Directors release news flashes. Teams must assess the impact and adjust their models accordingly.

4. Report Preparation and Submission Teams finalize their valuation report, including a summary of key assumptions, valuation outputs, and a final recommended range.

5. Final Boardroom Presentation and Negotiation Each team presents their valuation to a simulated board. Teams must defend their work under questioning and may be asked to negotiate a transaction price based on their analysis.

6. Debrief and Awards A comprehensive instructor-led debrief links simulation experiences to core finance theory. The winning team is announced based on model robustness, presentation quality, and negotiation logic.

Frequently Asked Questions

Is this simulation focused on DCF only? Absolutely not. While DCF is a core component, the simulation forces you to triangulate value using multiple methods. You will gain practical experience with comparable company analysis, precedent transactions, and synthesis techniques.
How realistic are the case materials and financial data? Our cases are based on real-world companies and scenarios, though names and figures are often disguised. The financial statements are fully integrated and dynamic, reacting realistically to your forecast assumptions.
What makes this different from a standard valuation case study? The dynamic, live element. Unlike a static case, information is revealed over time, market conditions change, and you must interact with "management." This mirrors the unpredictable, iterative nature of real advisory work.
Can this simulation be customized for our corporate training program? Yes. We frequently tailor the simulation to specific industries or valuation contexts for corporate clients.
How long is the typical simulation? The core program can be run as a 3-day intensive workshop or extended over 5-7 days for a university course, allowing more time for model development and instruction.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Correct application of formulas, model integrity, and appropriate methodology use.
Quality and defensibility of key inputs (growth, WACC, multiples selection).
Clarity, structure, and completeness of the final valuation report.
Ability to explain complex topics succinctly.
Handling of Q&A and critique from the board.
Ability to use valuation analysis to support a negotiating position.
Feedback from teammates on collaboration and contribution.
Engagement during sessions and quality of interactions during research phases.