• A
  • A
  • A
  • ABC
  • ABC
  • ABC
  • А
  • А
  • А
  • А
  • А
Regular version of the site
For visually-impairedFor visually-impairedUser profile (HSE staff only)Search
Advanced search
Menu
HSE University
User profile (HSE staff only)Search
Advanced search

Course Syllabus

2024/2025

Corporate Valuation Cases in Mergers and Acquisitions

Type: Mago-Lego
Delivered by: International College of Economics and Finance
When: 3 module
Open to: students of one campus
Language: English
ECTS credits: 3

Course Syllabus

Full Syllabus

Abstract

Corporate Valuation Cases is a one-semester course which primary objective is to give students some useful insight into the practicalities of investment banking profession. The course will further strengthen financial evaluation skills obtained by student in the previous courses and will focus on practical aspects of valuation models applied to various industries and transaction types. The course will start with some overview of modern accounting practice under IFRS (and GAAP), as applied to an investment banker’s work. It will also provide students a brief overview of the European and US securities regulation in terms of the major areas of awareness in the IB environment. This will involve discussing typical disclosure requirements and common bankers’ duties in a banker-client relationship and corporate governance. An overview of the major areas of awareness when concluding corporate transactions under the English law will be provided. The course material will be based on selected sections of the required reading list and optional supplementary readings to be provided to the students by the ICEF. Most of the sessions will be concluded by practical interactive cases involving multiple aspects of the course material, to be submitted by the next class session. Throughout the course, the cases will increase in complexity from qualitative analysis to practical valuation models and actual deal making by students. The course will be taught and evaluated in English. Prerequisites: A Corporate Finance course or equivalent. Investment Analysis course or equivalent. Basic accounting course.
Learning Objectives

Learning Objectives

  • The purpose of the course is to give the students basic knowledge and practical skills required at the entry level to the investment banking and consultancy professions. Considerable amount of practical exercises will allow students to practice their skills across various industries and different advisory engagement types that they will likely to see in their initial years in the profession.
  • During the course, practical cases will increase in the level of complexity from understanding information flow through financial statements to conducting corporate valuations in the light of specific transactions. In the early cases students will be expected to produce simple IFRS financial statements themselves by posting journal entries reflecting economic events of the case into accounting ledgers.
  • In the following coursework students will analyze IFRS financial statements of a public company with a view to prepare evaluation models on the basis of publicly available information, thus simulating work of an equity research analyst. Students will learn how to exercise their professional judgment in analyzing the company performance at large, and how it is presented in the financial statements. Students will calculate some of the most common financial ratios and use them building discounted cash flow models.
  • Students will understand basic elements of typical due diligence process in specific industries, such as oil & gas and real estate. They will learn specific terminology, valuation techniques and value drivers used in these industries. Common spreadsheet building techniques, sensitivity analysis, will also be taught, as well as the use of third-party competent persons reports.
  • In the concluding part of the course students will learn how to apply these techniques to specific transaction types and use them in initial public offerings, share purchase negotiations, etc. Context of securities regulation and basic elements of contract law will be introduced. Main focus of the case work will be on negotiations between students’ teams, where students will have a plenty of practical deal making.
  • Throughout the course students will have need to conduct their own independent Internet research on various aspects of the case work and learn how to work with large amounts of non-adapted professional literature.
Expected Learning Outcomes

Expected Learning Outcomes

  • calculate some of the most common financial ratios and use them building discounted cash flow models
  • conduct their own independent Internet research on various aspects of the case work
  • exercise their professional judgment in analyzing the company performance at large
  • gain experience of practical deal making
  • outline basic elements of typical due diligence process in specific industries, such as oil & gas and real estate
  • use common spreadsheet building techniques, sensitivity analysis, third-party competent persons reports
  • work with large amounts of non-adapted professional literature
Course Contents

Course Contents

  • Introduction to Investment Banking profession
  • Review of accounting and financial statements analysis
  • Valuation methods
  • Investment Banking Process
Assessment Elements

Assessment Elements

  • non-blocking Сase 1
    Preparation of financial statements. Produce general ledger, accounts’ ledgers, trial balance, balance sheet, income statement, cash flow statement. Individual home.
  • non-blocking Case 7
    Valuation model of an oil company. Production profile. Concluding valuation and a supplementary note. Team home.
  • non-blocking Case 8
    M&A Negotiations Preparation Case. Team home.
  • non-blocking case 10
    M&A Negotiations Case. Team home with in-class presentation.
  • non-blocking exam
  • non-blocking Case 9
    M&A Negotiations Case. Team home with in-class presentation.
  • non-blocking Case 5
    Energy capacity auction, Levelized Cost of Electricity LCOE.
  • non-blocking Case 2
    Financial Statements Analysis of a public company, ratio analysis, credit capacity assessment. Individual home.
  • non-blocking Case 6
    Damages Evaluations Case. Team home.
  • non-blocking Case 3
    Valuation of a public company (based on Case 2). DCF model. Multiples valuation. Research note with investment recommendation and qualitative description of company performance on the basis of its financial statements. Team home.
  • non-blocking Case 4
    Real Estate Company Valuation. Buy or Sell side perspective. Supplementary note. Team home
Interim Assessment

Interim Assessment

  • 2024/2025 3rd module
    0.05 * Case 2 + 0.05 * Case 3 + 0.05 * Case 4 + 0.05 * Case 5 + 0.05 * Case 6 + 0.05 * Case 7 + 0.15 * Case 8 + 0.15 * Case 9 + 0.05 * case 10 + 0.3 * exam + 0.05 * Сase 1
Bibliography

Bibliography

Recommended Core Bibliography

  • Liaw, K. T. (2012). The Business of Investment Banking : A Comprehensive Overview (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=400994
  • Weston, J. F., Mitchell, M., & Mulherin, J. H. (2014). Takeovers, Restructuring, and Corporate Governance: Pearson New International Edition (Vol. 4th ed). Harlow: Pearson. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1418226

Recommended Additional Bibliography

  • Copeland, T. E., Koller, T., & Murrin, J. (2000). Valuation : Measuring and Managing the Value of Companies (Vol. 3rd ed). New York: John Wiley & Sons, Inc. [US]. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=53431
  • Epstein, B. J., & Jermakowicz, E. K. (2007). Wiley IFRS 2007 : Interpretation and Application of International Financial Reporting Standards. Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=492804
  • Fox, I., & Marcus, A. (1992). The Causes and Consequences of Leveraged Management Buyouts. Academy of Management Review, 17(1), 62–85. https://doi.org/10.5465/AMR.1992.4279571
  • Reilly, R. F., & Schweihs, R. P. (2000). The Handbook of Advanced Business Valuation. New York: McGraw-Hill Professional. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=52262
  • Troy, L. (2012). Almanac of business and industrial financial ratios ; Almanac financial ratios. Slovenia, Europe: Prentice Hall. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.4C5F342C

Authors

  • IVANOV VYACHESLAV ALEKSANDROVICH