Advanced Corporate Finance and Strategic Investments
Class 1FP430 in partnership with Harvard, Princeton and Erasmus University.
Find out how financial masterminds create value through Real Options and Games Theory application in the competitive environment.
Learn how to structure, defend and “sell” your M&A deal. Receive feedback from PENTA, KKCG and McKinsey & Company practitioners. Be ready for the real world application!
1FP430 (Master programs), taught in English
Exchange students are Welcome!
REGISTRATION THOUGH EMAIL: firstname.lastname@example.org
This course follows a problem-solving approach that synthesizes ideas from game theory, real options and strategy for corporate decision-making. During this course, we synthesize cutting-edge developments in corporate finance and related fields — in particular, real options and game theory — to help bridge the gap between corporate finance and strategic decision-making. The course covers a wide range of valuation examples, such as firm valuation, private equity acquisition strategies, R&D investment in high-tech sectors, joint research ventures, product introductions, investments in infrastructure, and extraction industry investment.
This course is structured in two modules.
The first module introduces you to both traditional and new valuation principles for strategic investment. We review the basic concepts and foundations of the building blocks such as: Traditional DCF-valuation (WACC- and APV-method), Strategic management, The valuation of real options, Games and bidding strategy. An essay written on one covered topic, chosen by a student, assesses the acquired knowledge.
In the second module we discuss various applications and examples of private equity investment, acquisitions, strategic deals (M&As), highly levered transactions (LBOs) and initial public offerings. The ultimate aim is to synthesize, abovementioned, traditional valuation techniques with the newly acquired knowledge about strategic and flexibility value in order to derive and thoroughly understand a concept of the expanded NPV. To simulate corporate finance practice, students are required to deliver a structured corporate acquisition deal in a relatively pressing time span. This final project will be presented before and assessed by a committee composed of corporate finance practitioners and scholars.
This course is simultaneously held on the Erasmus University in Rotterdam, Princeton University and Harvard Business School under supervision of prof. Smit (Erasmus University).