Our team—Reda, Shrisha, Jackson and Luke—recently participated in The Business Valuation (BV) Challenge, a virtual case competition that allows students to get a glimpse into real business valuation and an introduction to the Chartered Business Valuation (CBV) designation.
The competition had us conduct internal and external valuations and analyze synergies that would occur in a real-life merger or acquisition deal. As part of the competition, students also had the opportunity to attend a workshop about the basics of valuating a company. Unfortunately, our team did not place in the competition. However, it was an enlightening experience that allowed us to apply many of the skills we've learned in our finance classes.
When we signed up for the BV Challenge, we were not expecting an intensive introduction to how messy, complex and exciting real valuation work can be. We originally joined because we wanted a way to apply the concepts we had been learning in our introductory finance and accounting courses, such as, Discounted Cash Flow (DCFs), things multiples, and capital structure decisions. However, it did not take long for the competition to remind us that textbook examples are clean and real companies are not.
Balancing the BV Challenge with classes, assignments and co-op applications pushed us in the best way possible. Each of us had to learn how to manage our time and prioritize tasks under tight deadlines. Despite the intense workload, the most rewarding part was seeing how everything we have learned in the School of Accounting and Finance (SAF) fits together. What we learn in our accounting courses matters when building a working model under pressure.
Beyond applying in-class concepts, we expanded our understanding of business valuation using resources such as the CBV Valuations Primer and business reports. This pushed us beyond coursework and encouraged us to think more creatively and like industry professionals.
In addition to technical learning, the challenge gave us insight into the CBV profession and demonstrated the depth behind professional valuation work. It helped us appreciate the combination of strategy, finance and storytelling involved in defending a recommendation, and introduced us to new potential career paths.
Overall, the competition pushed us outside our comfort zones and strengthened our confidence. Most importantly, it showed us that we genuinely enjoy this type of work, which will help us navigate our future co-op positions and careers. We are incredibly grateful to SAF for making this opportunity possible and look forward to participating in future competitions.