Executive MBA

Program
Generation 2009/11

SYLLABUS
Module Title: Advanced Finance

Professor name: Daniel Lenardić

Date: 18-20 March, 2011

Objective

The objective of this course is to expand on the concepts developed in the

course on Financial Management. The course will introduce will first of all
discuss the different methods of valuation of firms, stressing the indicators of
value creation. The different techniques of valuation will be discussed. This will
include the multiples and the discounted cash flow approaches. Recent
developments in valuation will also be discussed. The market for corporate
control will be analyzed, in particular the mergers and acquisition operations.
The focus will be on the rationale, process and deal structuring. The course will
also look at other mechanisms of changing ownership including leveraged
buyout. The course will use cases to illustrate the different mechanisms and
techniques.

Prework

You are required to read the five Harvard Business Review articles available at
Restricted Student Area. There will be an open book quiz on the first day of the
module and will make 20% of the final grade
Further, familiarize yourself with the cases available at Restricted Student Area
which will be discussed in class.

Course work

A combination of formal lectures, case analysis and group discussions.

Presentation of cases in groups.

Evaluation

Participants will be evaluated on three aspects:

1. Prereading Quiz based on HBR articles (open book) (20%)

2. Class participation (10%)
3. Case assignments/Presentation (20%)
4. Final examination (open book) (50%)
 Executive MBA
Program
Generation 2009/11

Reading

Participants are required to read selected chapters (4,19,33) from “Principles

of Corporate Finance” by Brearly and Myers, Seventh Edition, Editor
McGraw-Hill.

Students will be asked to analyse cases which would be presented in class.

Participants will be required to use the Internet to get data for analysis of listed
case companies.

Schedule

Day 1

9:15 – 10:00 Prereading Quiz

10:00 – 11:00 Case analysis to revise the notions of WACC, EVA and value creation
in the context of financial strategy.
11:00 – 11:30 Break
11:30 – 13:00 Valuation of firms, foundations, principles and methods
13:00 – 14:30 LUNCH BREAK
14:30 – 16:00 Valuation of firms using free cash Flow approaches, difficulties
encountered and choice of right parameters.
16:00 – 16:30 Break
16:30 – 18:00 Case analysis, discussion of real life companies
18:00 – 19:00 Closing & examination team case intro

Day 2

9:00 – 11:00 Mergers and acquisitions, operations rationale and process

11:00 – 11:30 Break
11:30 – 13:00 Mergers and acquisitions, accounting principles, choice of payment,
use of contingencies value rights and deal structuring.
13:00 – 14:30 LUNCH BREAK
14:30 – 16:00 Case analysis in groups
16:00 – 16:30 Break
16:30 – 18:00 Case analysis in groups
18:00 – 19:00 Closing

Day 3

9:00 – 11:00 Leveraged buyouts, logic of operations. The choice of targets and the
structure of the deal.
 Executive MBA
Program
Generation 2009/11

11:00 – 11:30 Break

11:30 – 13:00 Investors: Private equity funds
13:00 – 14:30 LUNCH BREAK
14:30 – 16:00 Examination team case work
16:00 – 16:30 Break
16:30 – 18:00 Financial restructuring & Leveraged buyouts – case examples
18:00 – 19:00 Closing