Duration
30h Th
Number of credits
| Master in management (120 ECTS) (evening classes) | 5 crédits |
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the first semester, review in January
Schedule
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
The following topics are discussed:
- Fund flow analysis
- Value creation on the asset side
- Value creation on the financing side: Capital structure theories; Payout policy
- Private Equity: Valuing a proposal; Exit Strategies
Starting from the objective of shareholder value creation, we stress the importance of cash generation, via customer value creation, as the main purpose of a business. We show how cash flow over a period can be calculated from income statement and balance sheet items. Next, we discuss performance indicators that help us determine whether value is/has been created through good investment decisions (asset side). Return on invested capital (ROIC) and cost of capital are central concepts in the discussion. The decomposition of Return on invested capital in a profit margin and turnover ratio is discussed, as well as the link of the ROIC components with firm strategy.
Next, we study value creation strategies on the financing side. Can financing strategies (debt versus equity financing, payout policy) create value for shareholders? How can financing decisions create value? How to calculate the financing need of a start-up or growing business?
The main tools discussed are applied from a private equity perspective: How to value a business? What makes a business a good investment? How is a typical deal structured? How does price paid relate to value? How to calculate the return at exit from an investment in a business?
Learning outcomes of the learning unit
At the end of the course students should be able to:
- Understand a business in terms of cash flow needs/cash flow generation.
- Examine the implications of corporate strategy (asset side and liability side) for value creation and firm value.
- Examine the value implications of different financing alternatives.
- Value a business.
- Calculate the (expected) return of an investment in a business.
Prerequisite knowledge and skills
Planned learning activities and teaching methods
Mode of delivery (face to face, distance learning, hybrid learning)
face-to-face
Organisational adjustments related to the current health context
Recommended or required readings
Assessment methods and criteria
Below you will find information on the evaluation methods planned for in-person and remote exams as well as those planned for hybrid sessions. Depending on how the health crisis evolves, the chosen method will be communicated to you no later than one month before the start of the exam session.
- Team preparation of cases
- Class participation
- Evaluation of group work in class
- Final test
Work placement(s)
Organizational remarks
The seminar will take place at the Kloster Heidberg in Eupen. It will be organized over a weekend from Friday 5pm until Sunday 1pm.
Contacts
sigrid.vandemaele@uhasselt.be