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What Is Your Practice Really Worth? Free Cash Flow Valuation for a Professional Practice Explained

Revenue looks impressive, but cash flow determines value. This session explains how free cash flow is used to value a professional practice properly.

Date:

7 May, 2026

Time:

14:00

Hours:

2 hours

CPD Units:

3

Category:

Management Accounting

Group:

Channel 1: Compliance, Channel 2: Growth

Format:

Live Event

R345,00 VAT incl.

Product Information

Many professional practices believe their value lies in turnover or accounting profit. In reality, value is driven by sustainable free cash flow. This session explains how free cash flow valuation works in a professional practice context and why it provides a more realistic view of worth. Attention is given to normalising earnings, adjusting for owner dependence, and understanding how risk and growth affect valuation outcomes. The session focuses on how valuers think and why certain practices attract higher values than others. Understanding this approach improves decision making around selling, buying, succession planning, and partner exits. This session brings clarity to a topic that is often misunderstood and poorly applied in practice valuations.

Presenter/s

Dr Shaun Watson

Lecturer in Financial Management at the University of the Free State. Specialises in practical financial management, governance and compliance and real-world business impact.

What will set you apart

  • · Why profit is not the same as value
  • · What free cash flow really means in a practice environment
  • · How owner involvement affects valuation
  • · Which adjustments are commonly required
  • · How growth, risk, and sustainability influence value
  • · Why practices are often overvalued or undervalued
  • · How valuation supports sale, buy in, and succession decisions

Event breakdown

  • · What drives value in a professional practice
  • · Profit versus cash flow
  • · Understanding free cash flow
  • · Normalising practice earnings
  • · Owner dependence and risk
  • · Growth assumptions and sustainability
  • · Discount rates and judgement
  • · Common valuation mistakes
  • · Using valuation for real decisions

Certificate

The following event is awarded 3 CPD units in Management Accounting.