30390 - EQUITY AND VENTURE CAPITAL FINANCING
SUMMER SCHOOL
Department of Finance
Course taught in English
Go to class group/s: 95
Course Objectives
The summer course is focused on the analysis of private equity & venture capital business in the perspective of financial intermediaries dedicated to scouting, advisory, arranging and financing activities. Particular attention is given to provide students with a deep understanding of the mechanism underpinning the creation or the development of a firm and the financial sustain coming from the financial system. This aspect is quite relevant to enhance students to enter the world to launch their own start-up. As a consequence of these factors, the course is divided in to four main sections: market and competition; regulatory and legal issues; management of a private equity & a venture capital fund or deal making. The presentation of a real-word case studies will further enhance the link with the best practices observable in the market.
Course Content Summary
Part A: private equity & venture capital in the financial system- The special role of private equity & venture capital industry: why are they necessary in a modern economy?
- Market trends in Europe and in US
- Competitive models of private equity & venture capital: angels and informal investors; incubators; start-up financer; closed-end funds; merchant banks; vulture funds.
- Relationship between banking system and private equity & venture capital industry
- Regulations and supervision towards investing in non financial firms
- The constitution of a venture capital company
- The constitution of a private equity fundLegal issues for venture capital investment schemes: European versus US and UK patterns
- Fiscal issues for venture capital investment schemes: European versus US and UK patterns
- Introduction to different categories of investment: new ventures, start up, young firms, high potential firms, family owned firms and turnaround involved companies
- The value chain of investing in firms: a broad vision
- The valuation of the target company: how to evaluate and how to manage the deal?
- Management issues: managing the single investment, funding process, managing the portfolio of investments, exit way process
- Introduction to company valuation fundamentals
- The concept of WACC, DCF and multiples
- Applying valuation to venture capital
- Applying valuation to private equity
- Special cases of company valuation within private equity and venture capital: IPO, LBO, turnaround, M&A financing.
Detailed Description of Assessment Methods
For all the students the valuation is based 50% work in small groups and 50% individual assessment (final written exam)
Textbooks
The text book for all the students is:- Caselli S., Private Equity and Venture Capital in Europe, Elsevier, New York, 2010.
Last change 11/06/2015 14:51