ITA | ENG
B020932 - MERGER AND ACQUISITION VALUATION
Main information
Teaching Language
Course Content
Suggested readings
Learning Objectives
Prerequisites
Teaching Methods
Further information
Type of Assessment
Course program
Sustainable Development Goals 2030
Academic Year 2023-24
Coorte 2022 - Second Cycle Degree in FINANCE AND RISK MANAGEMENT
Course year
Second year - Second Semester
Belonging Department
Economics and Management (DISEI)
Course Type
Single education field course
Scientific Area
SECS-P/09 - CORPORATE FINANCE
Credits
9
Teaching Hours
72
Teaching Term
19/02/2024 ⇒ 31/05/2024
Attendance required
No
Type of Evaluation
Final Grade
Course Content
show
Course program
show
Lectureship
Mutuality
Course teached as:
B031084 - PRIVATE EQUITY RISK MANAGEMENT AND DUE-DILIGENCE LAB
Second Cycle Degree in FINANCE AND RISK MANAGEMENT
B031084 - PRIVATE EQUITY RISK MANAGEMENT AND DUE-DILIGENCE LAB
Second Cycle Degree in FINANCE AND RISK MANAGEMENT
Teaching Language
English
Course Content
THE COURSE IS SPECIFICALLY DESIGNED FOR THE MASTER PROGRAM "FIRM" AND ITS STUDENTS (REGULARLY ENROLLED IN THE PROGRAM).
The course is very advanced and focuses on the
Analysis of Innovative forms of Finance, Venture Capital, Private Equity, Crowdfunding, etc.
THE COURSE IS ORGANIZED IN A VERY APPLIED AND ADVANCE WAY, WITH A SERIES OF SEQUENTIAL APPLICATIONS, CLASS DISCUSSIONS, AND LABORATORIES.
AS SUCH, THE ATTENDANCE IN REAL TIME
The course is very advanced and focuses on the
Analysis of Innovative forms of Finance, Venture Capital, Private Equity, Crowdfunding, etc.
THE COURSE IS ORGANIZED IN A VERY APPLIED AND ADVANCE WAY, WITH A SERIES OF SEQUENTIAL APPLICATIONS, CLASS DISCUSSIONS, AND LABORATORIES.
AS SUCH, THE ATTENDANCE IN REAL TIME
Suggested readings (Search our library's catalogue)
For Attending Students: personalized course package (specifically designed for students belonging to the FIRM Master program).
Simona Zambelli (Create Mc Graw Hill); Private Equity and Due diligence Lab; ISBN 978130778188-5
For non attendant students, the book is :
Cumming Douglas J., Johan Sofia A. (2014), Venture capital and private equity contracting: an international perspective. Elsevier.
In addition, non attendant students can also look at the following book:
Eli Talmor, Florin Vasvari (2011), International private equity, Print ISBN:9780470971703 |Online ISBN:9781119973904 |DOI:10.1002/9781119973904
Simona Zambelli (Create Mc Graw Hill); Private Equity and Due diligence Lab; ISBN 978130778188-5
For non attendant students, the book is :
Cumming Douglas J., Johan Sofia A. (2014), Venture capital and private equity contracting: an international perspective. Elsevier.
In addition, non attendant students can also look at the following book:
Eli Talmor, Florin Vasvari (2011), International private equity, Print ISBN:9780470971703 |Online ISBN:9781119973904 |DOI:10.1002/9781119973904
Learning Objectives
The course is composed of two parts (“Modules”): Private Equity (Module A) Due Diligence (Module B). Both modules are performed in English and the evaluation will be in English.
The Module A studies the structured finance principles, the private equity investment and the entire venture capital investment cycle, from a financial institutions point of view. Particular emphasis is given to the role of financial contracts between the investors and the investees.
The Model B is focused on a particular stage of the equity investment: the due diligence of the investment future financial performance. This model explains how venture capitalists evaluate new investment projects through the business plan. Case studies are shown to exemplify and illustrate the due diligence process.
At the end of these modules the students should be able to:
• Understand the role played by private equity institutions;
• Critical evaluate financial contracts used in the private equity markets;
• Be aware of the implications of financial contracts on actual investment decisions, risks, incentives and rewards for investors and investees;
• Understand the process of the due diligence analysis
• Write a business plans for business projects
• Critical evaluate investment opportunities through the business plan analysis.
The Module A studies the structured finance principles, the private equity investment and the entire venture capital investment cycle, from a financial institutions point of view. Particular emphasis is given to the role of financial contracts between the investors and the investees.
The Model B is focused on a particular stage of the equity investment: the due diligence of the investment future financial performance. This model explains how venture capitalists evaluate new investment projects through the business plan. Case studies are shown to exemplify and illustrate the due diligence process.
At the end of these modules the students should be able to:
• Understand the role played by private equity institutions;
• Critical evaluate financial contracts used in the private equity markets;
• Be aware of the implications of financial contracts on actual investment decisions, risks, incentives and rewards for investors and investees;
• Understand the process of the due diligence analysis
• Write a business plans for business projects
• Critical evaluate investment opportunities through the business plan analysis.
Prerequisites
THIS COURSE IS DESIGNED FOR STUDENTS ATTENDING THE 2ND YEAR OF THE "FIRM" MASTER PROGRAM, ACTIVATED BY UNIVERSITY OF FLORENCE.
AS SUCH A SERIES OF PRE-REQUISITES ARE COMPULSORY (FOR ALL STUDENTS, NATIONAL AND INTERNATIONAL) WILLING TO INCLUDE THIS COURSE IN THE STUDY PLAN, SUCH AS:
1) FINANCIAL MATHEMATICS / OR STATITISTICS OR A QUANTITATIVE COURSE;
2) CORPORATE FINANCE (compulsory, before taking this course);
3) FINANCIAL ANALYSIS (highly suggested)
4) ADVANCE KNOWLEDGE OF ENGLISH LANGUAGE (SPOKEN AND WRITTEN) --compulsory
ALL STUDENTS MUST SATISFY THESE PREREQUISITES BEFORE STARTING THIS COURSE
AS SUCH A SERIES OF PRE-REQUISITES ARE COMPULSORY (FOR ALL STUDENTS, NATIONAL AND INTERNATIONAL) WILLING TO INCLUDE THIS COURSE IN THE STUDY PLAN, SUCH AS:
1) FINANCIAL MATHEMATICS / OR STATITISTICS OR A QUANTITATIVE COURSE;
2) CORPORATE FINANCE (compulsory, before taking this course);
3) FINANCIAL ANALYSIS (highly suggested)
4) ADVANCE KNOWLEDGE OF ENGLISH LANGUAGE (SPOKEN AND WRITTEN) --compulsory
ALL STUDENTS MUST SATISFY THESE PREREQUISITES BEFORE STARTING THIS COURSE
Teaching Methods
The course is organized with a series of SUBSEQUENTIAL AND CONNECTED LABORATORIES, and will be taught through various dynamic teaching methodologies, aimed at maximizing the interaction with the class (in real time), such as, laboratories, business cases, business games, role playing, class discussions, applications, presentations and practical exercises.
Further information
HIGHLY RECOMMENDED AN ACTIVE PARTICIPATION IN REAL TIME STARTING FROM THE FIRST CLASS (the active participation can be in presence, or online, according to the pandemic situation).
NO PASSIVE PARTICIPATION is recommended.
NO LATE ENROLLMENT is recommeded. Please make sure to have all the PRE-REQUISITES specified for this course, before taking this course.
Please get organized to attend the course, starting from the FIRST CLASS (where I will provide you with all the necessary details related to the course, and the final projects).
PLEASE ENROL AS SOON AS POSSIBLE (LATE ENROLLMENT, AFTER THE COURSE HAS STARTED, IS NOT RECOMMENDED).
NO PASSIVE PARTICIPATION is recommended.
NO LATE ENROLLMENT is recommeded. Please make sure to have all the PRE-REQUISITES specified for this course, before taking this course.
Please get organized to attend the course, starting from the FIRST CLASS (where I will provide you with all the necessary details related to the course, and the final projects).
PLEASE ENROL AS SOON AS POSSIBLE (LATE ENROLLMENT, AFTER THE COURSE HAS STARTED, IS NOT RECOMMENDED).
Type of Assessment
*ATTENDAND STUDENTS will be evaluated through various methods: in class TESTS, SEQUENTIAL LABORATORIES, CASE DISCUSSIONS, BUSINESS GAMES, ORAL PRESNTATIONS AND WRITTEN FINAL PROJECT (on the topics discussed with the professor
* NON ATTENDANT STUDENTS: written final project on the parts included in the book suggested for non attendant students (see the book for non attendant students)
The final project must be submitted via email on the dates specified for the exam. The final project will be evaluated according to the following elements:
1) analysis skills and deepness of analysis
2) summary skills, focus capacity and clarity of explanations
3) innovative personal contribution
As a sample (for structure, style and content) you can consider any articles published in the Journal of Banking and Finance. Follow the style of the Journal of Banking and Finance carefully in all details.
The format for the final project must follow the articles of JOURNAL OF BANKING AND FINANCE (for citations and final references as well).
* NON ATTENDANT STUDENTS: written final project on the parts included in the book suggested for non attendant students (see the book for non attendant students)
The final project must be submitted via email on the dates specified for the exam. The final project will be evaluated according to the following elements:
1) analysis skills and deepness of analysis
2) summary skills, focus capacity and clarity of explanations
3) innovative personal contribution
As a sample (for structure, style and content) you can consider any articles published in the Journal of Banking and Finance. Follow the style of the Journal of Banking and Finance carefully in all details.
The format for the final project must follow the articles of JOURNAL OF BANKING AND FINANCE (for citations and final references as well).
Course program
The course will focus on the Venture Capital Cycle, in all its parts and phases (fundraising, selection, valuation, deal structuring, operation, monitoring, and exit). More specifically the following parts will be discussed in the course.
IN THE COURSE WE WILL ORGANIZED VARIOUS DUE DILIGENCE LABORATORIES, in order to better understand the Private Equity Risk Management techiques
Fund Structure and Governance
• Institutional Investors: the perspective of the fund managers
• Limited Partnership Agreements
• Compensation Contracts
• Fundraising and Regulation
• Specialized Investment Mandates
• The role of Government and Alternative Policy Options
Selection and Due Diligence
Financial Contracting between Funds and Entrepreneurs
• The investment process
• Security Design
• Security Design and Adverse Selection
• Corporate Venture Capital Fund Contracts
• Preplanned Exits and Contract Design
Investor Effort
• Investor Value-added
• Contracts and Effort
• Home Bias
• Portfolio Size
Disinvestment
• The Divestment Process
• Exit Outcomes
• Contracts and Exits
• Valuation, Returns, and Disclosure
IN THE COURSE WE WILL ORGANIZED VARIOUS DUE DILIGENCE LABORATORIES, in order to better understand the Private Equity Risk Management techiques
Fund Structure and Governance
• Institutional Investors: the perspective of the fund managers
• Limited Partnership Agreements
• Compensation Contracts
• Fundraising and Regulation
• Specialized Investment Mandates
• The role of Government and Alternative Policy Options
Selection and Due Diligence
Financial Contracting between Funds and Entrepreneurs
• The investment process
• Security Design
• Security Design and Adverse Selection
• Corporate Venture Capital Fund Contracts
• Preplanned Exits and Contract Design
Investor Effort
• Investor Value-added
• Contracts and Effort
• Home Bias
• Portfolio Size
Disinvestment
• The Divestment Process
• Exit Outcomes
• Contracts and Exits
• Valuation, Returns, and Disclosure
Sustainable Development Goals 2030
4. Quality education
5. Gender equality
9. Industry, Innovation and infrastructure
10. Reduced inequalities
5. Gender equality
9. Industry, Innovation and infrastructure
10. Reduced inequalities