Period 3: choose two electives of the *electives period 3, but at least one of the following courses
* Electives period 3
- Mergers and Acquisitions
- Multinational Organisation
- Entr. Ecosystems & Economic Development
- Management Control Systems
- Platform Economy and Business
- Asset Pricing
- Financial Regulation
- Economics of Global Challenges
- Environmental Economics and Policy
- Behavioural Economics and Public Policy
- Business Development Analytics
- Impact Investing
Valuation in M&As
This course will focus on the methods and tools to value corporation in the context of M&A. This knowledge is important for investors, managers, stock pickers and acquisition hunters. The course will discuss two main methods of valuation, the discounted cash flow method along with all its related principles and concepts, like the discount rate, the growth rate, the free cash flow and the terminal value. This involves analysing available accounting information, coming up with economically meaningful forecasts of future performance and incorporating the same as part of valuation models that are appropriate to the firm-specific context. The second method will be valuing companies by using multiples and comparative ratios. To provide hands on experience, in the workshops we will apply the theories discussed each week to estimate different valuation inputs to complete a real-world valuation exercise by the end of the course. Students will conduct a full-fledged valuation exercise through the course project.
Learning objectives
At the end of the course the student should be able to:
- Compute companies' values using several different models and techniques;
- Analyse companies' accounting statements and the corresponding management discussion;
- Forecast future cashflows, to determine the cost of capital, and to apply discounted cashflow valuation techniques appropriate to the context of the firm.
- Understand the assumptions underlying the various valuation methodologies (discounted cashflow models, and valuation multiples) and the differences and the similarities therein.
- Appreciate the role of judgment in financial accounting and analysis.
- Collect financial data from various Internet sources;
Period 3 and 4 (thesis)
Period 1-4
