Business Valuation and Introduction to Private Equity

Professor: Stoyan Kostadinov, Aurignac Finance.

Objective:

• Presentation and understanding of the general framework in which an evaluation is carried out (objectives sought, issues, stakeholders, etc..) ;
• Presentation and assimilation of the main valuation methods, with particular focus on the DCF method and the multiples method ;
• Presentation and work from real-life situations: practical cases of application of evaluation techniques.

Outline:

1. Introduction to equity capital transactions and M&A processes ;
2. Analytical review of the major concepts in financial assessment, study of income statement balances and balance sheet equilibrium to be mastered for an evaluation ;
3. Presentation of the concepts of enterprise value, value of securities, net financial debt ;
4. Presentation and critical analysis of the multiples method ;
5. Presentation and critical analysis of the DCF method.

Grading: Final exam at the end of the semester.

Bibliography:

• Vernimmen P. : Corporate finance (Dalloz, Paris).