Theory and Practise of Business Valuation
Lecturer: Dipl. Kfm. Dr.rer.pol. Stefan Gros
Lecture with integrated exercises; Bachelor Semester 4; Elective subject for Master FACT and Management Science; SS; 5 CP; written exam of 90 minutes; Language: English
News
-
Time and Room
Please find the lecture, tutorial and exam dates under the following link: KU.Campus.
A „Block-Session“ consists of four parts:
- Lecture, which aims at knowledge transfer, based on Notes and the required reading
- Review Questions, which stresses major, exam relevant learnings
- Excercises with homework with solutions explained in class
Learning outcomes/ competences
- Students will learn to use basic valuation and finance terminology in an adequate and critical manner.
- They will develop an understanding of the connections within a business valuation and find out the relation between finance and strategy
- Students will be able to understand business valuation as a guideline of business decisions and to conduct valuations. The comprehensive connections between the different sub-categories of business science will be made transparent.
- They will learn how to develop and apply portfolio strategies and get an understanding of corporate performance. Furthermore they learn the analysis of Mergers & Acquisitions, approaches for improving the business performance and the design of capital structures as a means to support the corporate strategy.
- After finishing the course students will possess necessary basics for the Certified Financial Analyst (CFA), an additional qualification which is very important and relevant in the professional life.
Content
1. Introduction
1.1. Why Maximizing Value?
1.2. Return on Invested Capital, Growth
2. Core Valuation Techniques
2.1 Discounted Cash Flow Valuation
2.2.1 WACC Method
2.2.2 APV Method
2.2.3 Economic Profit Method
2.3 Comparable Method
2.4 Forecasting Performance
2.5 Estimating Continuing Value
2.6 Estimating Cost of Capital
2.7 From Enterprise Value to Equity Value
2.8 Real Option Valuation
3. Portfolio and Performance Management
4. Merger and Acquisition
4.1 Basics of M&A
4.2 Theoretical grounding of M&A
4.3 The M&A-Process – An overview
4.4 The Strategy Process in an M&A-Project
4.5 The Structure Process of an M&A-Project
4.6 Human Resources in M&A
4.7 Acquisition Valuation
Recommendation for study plan
This course is designed for Bachelor students up from the 4th semester. Attending this course is strongly recommended when planning to write the Bachelor thesis at the Chair of Finance and Banking.
Lecture notes
Lecture Notes and Review Questions will be provided as pdf. download
Skirpt:
- General information
- Script
- Dr. Gros recommends to download or read his publications, to be found: www.stefan-gros.de under "PR & Neues"
- Important Announcement
Tutorial:
Exercises:
- Nr.2_Questions
- Nr.2_Questions
- Nr.2_ExcelSheet
- Solution Nr.2
- Nr.3_Questions
- Solution Nr. 3
- Nr.4_ExcelSheet
- Nr.4_Questions
- Solution Nr.4
- Nr.5_ExcelSheet
- Nr.5_Questions
- Solution Nr.5
- Nr.6_Questions
- Solution Nr.6
- Nr.7_Valuation_Case_Study
- Nr.7_Questions
- Solution Nr.7
- Nr.8_Questions
- Solution Nr.8
- Nr.9_ExcelSheet
- Nr.9_Questions
- Solution Nr.9
- Nr.10_Questions
- Solution Nr.10
- Granada takeover of Forte Case
- Article
- Questions
- Case Allocation
- Case Materials
Reading
- Koller/Goedhart/Wessels: Valuation, Measuring and Managing the Value of Companies, University 5. Ed., Wiley 2010
- Koller/Goedhart/Wessels: Valuation, Workbook, Wiley 2011
- Lucks, Kai (Hrsg.): M&A Projekte erfolgreich führen, Stuttgart 2011
- Palepu / Healy: Business Analysis and Valuation, 5th Ed., Harvard University Press 2013
- Penman, Stephen; Accounting for Value, Columbia University Press 2011
- Adolph / Mainnardi: The capabilities Premium in M&A, Strategy+Business Issue 66, Spring 2013
- Adolph / Pettit: Merger ahead: Mastering the five enduring trends of artful M&A, McGraw Hill 2009
- Brealey, Myers/ Allen: Principles of Corporate Finance, Global Edition 2011
- Drukarczyk / Schüler: Unternehmensbewertung, 6. Aufl., München 2009
- Drukarczyk/Ernst (Hrsg.): Branchenorientierte Unternehmensbewertung, 3. Aufl. München 2010
- Eayrs / Ernst / Prexl: Corporate Finance Training, 2. Aufl., Stuttgart 2011
- Ernst / Schneider / Thielen: Unternehmensbewertungen erstellen und verstehen, 4. Aufl., München 2011
- Pettit, Strategic Corporate Finance, Applications in Valuation and Capital Structure, Wiley 2007
- Prexl et al: Financial Modeling, Stuttgart 2010.
- Stevens/Brauer: Corporate Strategy & Governance, Stuttgart 2009
- Palepu, Healy, Peek: Business Analysis and VALUATION, IFRS Edition, 3rd Edition, Singapore 2013