MERGER & ACQUISITIONS AND ADVANCED VALUATION

Objectives

MODULE 1 – Advanced Valuation 6CFU

The objective of this course is to develop a detailed understanding of the tools used by market professionals (Equity analysts) and corporate managers to estimate the value of companies and stocks using public data. The central theme of the course will be the pricing of equity securities using both DCF and  relative valuation procedures. After completing the first part of 6 CFU, students should be able to: 

The first module of Advanced Valuation in focusing on both DCF and Relative Valuation (6 CFU). After attending this module students should be able to: 

a. Identify and interpret the key value drivers for a firm or industry using DCF and relative Valuation . 

b. Identify and interpret accounting and non-accounting information necessary for valuation.

c. Value corporations or stock target price based on instrisinc and  markets multiples. 

d. Critically analyze firm and equity valuation models and assumptions developed by others in equity reports or experts’ opinion or testimony and special situation such as M&A, Scissions.

MODULE 2 – M&A practices 3CFU

The final part of the course (3 CFU) is based on seminaries on case studies in merger and acquisition and other related topics. 

The seminars are taught in collaboration with practitioners working in the Finance Industry. This last module will provide students with an in-depth understanding of the M&A process and advanced valuation techniques used in merger and acquisition. Students will learn about the key factors that drive M&A activity, including strategic rationales, financing instruments and risk environment. 

Rules of Engagement 

• Rules of group work: 
• Pick your own groups.
• All group work will be self-policed, except in extreme circumstances. 

For further rules of engagements, grading policies and honor code please refers to the UNIFI Website. 

Attendance

Class attendance is essential to your success in this course. In class interaction and examples enrich the hands-out and the book materials and it allows you to have a better understanding of the discipline.  The signature on the periodically circulated attendance roster will determine attendance. Students with low (<60%) attendance will be considered and non-attendants and asked  to pass the oral exam in the regular exam sessions. 

Required Material 

Lecture Note Packets: The hands-out will be available through the web platform Teams

Case Studies and simulation : HBR JetBlue and HBR Country Wine Finance Simulation

Text Book: Investment Valuation, Third edition (John Wiley & Sons). Investment Valuation is the reference book. 

Exams and grading:

The grading is based on the class participation and presentation, group work and final exam. The final exam will be scheduled on May (exam week) or in the regular exams sessions.

Your grade is based on the 100 points you can receive during the course for the assignment. Here are the weights I will be using to rank you and to come out with your final grade. 

Group size may vary along the assignments depending on the class total participants

NB: In case of unjustified absence at the Simulation or lack of submission of the reports, students will be evaluated adding the missing weight % into the final exam (50% + A% +B%)