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Capital budgeting for development projects and the valuation of development projects

Description

Registration Time: 09.00
Sessions Time:
09.15 - 12.30 including a 15-minute coffee break
Speaker:
Mr Michael Zarb
Venue:
Lower Ground, Tower Training Centre, Swatar

Participation Fees
MIA Members:
€35.00
Non-MIA Members:
€70.00
Retired Members:
€15.00
Students:
€20.00

 

 

Background Information

Strong trends in local real estate market has encouraged market participants to engage in larger and more sophisticated projects.  In so doing, the need to produce detailed project-specific cash flows and feasibility studies has become more frequent, reinforced also by the increased-level of scrutiny and governance standards imposed by both internal and external stakeholders in relation to such projects.

In this regard, discounted cash flow analysis and related techniques can help management evaluate the feasibility and profitability of projects and assist in internal capital budgeting processes. These techniques are also pertinent to financial institutions, and other providers of finance, in assessing the feasibility and reasonableness of financial projections during the project selection and credit approval stages. To this end, this session will be primarily centred on the analysis of the project-specific cash flows with an emphasis on the project appraisal and valuation.

Objectives of this session

The objective of the course is to run through the process for conducting and evaluating a discounted cash flow analysis and other capital budgeting techniques, and highlight common shortfalls that can jeopardise the reliability of the findings. The course will also cover related topics such as evaluating the reasonableness of project forecasts, estimating an appropriate discount rate to use for project appraisal and techniques for dealing with risk and uncertainty.  The course will conclude by linking the above capital budgeting techniques to the valuation of development projects and provide an overview of techniques used for the valuation of developable sites and on-going development projects.

Topics on the agenda

This session will cover the following topics:

  • Overview of capital budgeting techniques and discounted cash flow analysis
  • Assessing the completeness and reasonableness of projections
  • Analysing key financial ratios implied by the projections
  • Identifying and analysing the project-specific risks
  • Understanding the timeline of the projects and its relationship with project risk
  • Estimating a reasonable discount rate for the project
  • The residual valuation method and the valuation of development projects
  • Overview of project-specific real options and their impact on the value of a development project 

Target audience

This session will be useful to key management personnel involved in the appraisal or valuation of development projects, including financiers or persons who are otherwise involved in capital budgeting.

 

CPE Hours

3 hours Core

Speaker
Michael Zarb
Senior Manager
Deloitte Malta

Michael Zarb joined Deloitte in July 2017 as a Senior Manager in Financial Advisory Services. He is a qualified accountant and corporate finance professional with 12 years of experience. Prior to joining Deloitte, Michael led a specialist team focused upon valuations and economics in a competing firm. Throughout his career Michael has led various valuation assignments, ranging from valuing tangible and intangible assets for corporate reporting requirements, to valuing investments and derivatives for assisting funds produce regular NAV updates, or to assist in strategic decision making, M&A activity and for tax purposes. Michael is a Chartered Accountant (ICAEW) and holds a BA (hons) from the University of Leicester and an MSc from the London School of Economics.

19
September 2019

Capital budgeting for development projects and the valuation of development projects

(M1973)

Organized By: The Malta Institute of Accountants
Type of Event: Seminar

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Date & Time
2019-09-19 09:15:00 2019-09-19 12:30:00 Europe/Malta Capital budgeting for development projects and the valuation of development projects Strong trends in local real estate market has encouraged market participants to engage in larger and more sophisticated projects. In so doing, the need to produce detailed project-specific cash flows and feasibility studies has become more frequent, reinforced also by the increased-level of scrutiny and governance standards imposed by both internal and external stakeholders in relation to such projects. Lower Ground, Tower Training Centre, Swatar, The Malta Institute of Accountants
Thu, 19 September 2019
09:15 - 12:30
Location
Lower Ground, Tower Training Centre, Swatar,
Cancellation Policy

Refer to Terms and Conditions

Terms & Conditions
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