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.

3 CPD units 7 May 2026 1 presenter

What will set you apart

By completing this course you will gain the following competencies

· 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

Category: Management AccountingType: CPD CourseCPD category: Management Accounting

Description

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.

Presenters

Dr Shaun Watson — Shaun Watson is a Chartered Accountant (SA) with a sharp focus on practical financial management, governance, and compliance, not just textbook theory. With a B.Compt, B.Acc Honours, and an H. Dip in Tax, plus experience as an auditor, audit manager, and senior lecturer, he knows what it takes to bridge the gap between accounting knowledge and real business success. Currently lecturing financial management to future accountants at the University of the Free State, Shaun doesn't just teach, he helps professionals apply financial principles to drive better decision-making. He's shared insights on international platforms, including the University of Bremen, and published research that accountants can actually use.

You will earn a certificate

On successful completion you will receive a certificate for 3 CPD units in Management Accounting.

Requirements

Laptop, desktop, or mobile device with internet access
Microsoft Edge, Google Chrome, Safari, or Firefox browser