Checking date: 25/10/2023

Course: 2023/2024

Advanced corporate finance
Master in Finance / Máster Universitario en Finanzas (Plan: 483 - Estudio: 261)

Coordinating teacher: TOLDRA SIMATS, ANNA

Department assigned to the subject: Business Administration Department

Type: Electives
ECTS Credits: 3.0 ECTS


Requirements (Subjects that are assumed to be known)
Students are expected to have completed the Corporate Finance Course. Course Language: This course is totally taught in English. The empirical exercises might be done using Excel, depending on the exercise. Professors: José Ignacio Carrión (European Investment Fund) Luís de la Plaza (The World Bank, and formerly ABN Amro Rothschild, JP Morgan Securities)
Students will gain a critical understanding of advanced topics in corporate finance, such as mergers and acquisitions, initial public offerings and venture capital investment. They will become familiar with the techniques used by practitioners and the institutional framework involved in these transactions; while gaining a sound theoretical background that will allow them to evaluate the appropriateness of "commonly used" practices for their own purposes. Course Description: this course is divided in two parts. The purpose of the first part is twofold. First, the goal is to understand how Mergers and Acquisitions (M&A) can create or destroy value for the different stakeholders. And second, the goal is to study how the design of the process of corporate finance transactions (M&A and IPOs) determine the outcome as much as valuation itself. The goal of the second part of the course is to gain a deep undesrtanding of the concepts and institutions involved in the venture capital and private equity industry, learn about the incentive problems faced by the different parties, and special emphasis will be put in understanding how each party is compensated and how to value venture capital deals.
Skills and learning outcomes
Description of contents: programme
Professor Luís de la Plaza will teach: Lesson 1: Structuring an M&A deal Lesson 2: The valuation of an M&A deal Lesson 3: The equity markets - IPOs Professor José Ignacio Carrión will teach: Lesson 4: The Economics of Venture Capital deals Lesson 5: Fund structure and fund compensation Lesson 6: Valuation of a VC deal
Learning activities and methodology
The course will consist of lectures that combine both theory and practical exercises. - Case 1: Example of an M&A deal. - Case 2: The compensation of VC fund managers - Case 3: The valuation of a VC deal Students will work in teams, learning to collaborate and organize the different roles in the team. Exercises will be handed in individually. In addition, the Professor will present the main theoretical concepts using Power Point presentations just before sutdents do the cases or exercises.
Assessment System
  • % end-of-term-examination 60
  • % of continuous assessment (assigments, laboratory, practicals...) 40
Calendar of Continuous assessment
Basic Bibliography
  • Brealey-Myers-Allen. Principles of Corporate Finance. McGraw-Hill. 2013
  • Metrick, A. and A. Yasuda. Venture capital and the finance of innovation.. 2nd Edition. Wiley Eds.. 2010
Additional Bibliography
  • Damodaran, A.. Damodaran on Valuation. John Wiley & Sons. 2006
  • Gompers, Paul A. and Josh Lerner . The Money of Invention. HBS Press. 2001
  • Gompers, Paul A. and Josh Lerner . The Venture Capital Cycle. MIT Press. 2004
  • Koller, T., Goedhart, M. and Wessels, D. Valuation. Wiley. 2010
Recursos electrónicosElectronic Resources *
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The course syllabus may change due academic events or other reasons.