BUSINESS VALUATION
Instructional goals
The objective of the course is to provide candidates with main tools to
perform advanced business valuation.
Intended learning outcomes
The lessons generally will deal with
explanation of main theoretical valuation models, identification of
valuation issues and analysis of possible approaches from
academic/professional best practises.
Course Contents
Step 1: Financial Methods Discounted Cash flow Cost of Capital
Step 2: Other methods Market Methods Asset-Based Methods Net Income Method
Mixed Methods Economic Value Added Method Adjusted Present Value Method
Step 3: Valuation of Shareholdings
Step 4: Valuation of Groups
Step 5: Valuation of M&A and LBO operations Step 6: Valuation of
Distressed firms
Step 7: Valuation of Intangibles Relief from Royalties Method Multi Period Excess Earnings Method Real Option Method
Reference Books
M. Vulpiani, "Special Cases of Business Valuation", 1st edition, McGraw Hill.
Teaching Methods
Classroom teaching Analysis of cases Testimonials Presentations and
assignments tutorials
Assessment Method
Written Test: Mandatory
Thesis assignment criteria
Presentation of a thesis project consistent with the program.
Week 1 Contenuto sessioni on line e on campus
Lesson 1 Introduction to the Course. The Business Valuation. Price and Value. Evidences from the market. Main valuation methods.
Lesson 2 Introduction to Financial methods. The theoretical rationale (MM – Gordon
formula). Discounted Cash Flow Method (DCF). Case Study: a simplified application of DCF.
Week 2 Contenuto sessioni on line e on campus
Lesson 1 Approaches for the determination of main drivers for DCF (FCF in explicit period, Normalized FCF, Cost of Capital, g).
Lesson 2 Cost of Capital. Methods for determination of Cost of Equity (CAPM, Expanded CAPM). Levering and Unlevering methods (Hamada formula). Small Cap Risk Premium. Methods for determination of other inputs of WACC calculation (weights, kd, etc..).
Week 3 Contenuto sessioni on line e on campus
Lesson 1 Specific Risk - Evidences From the Market and Possible Approaches for Its Quantification.
Lesson 2 Case Study: application of DCF
with WACC calculation.
Week 4 Contenuto sessioni on line e on campus
Lesson 1 Multiple methods. Equity methods. Income method.
Lesson 2 Other valuation methods. Mixed method. EVA method.
Week 5 Contenuto sessioni on line e on campus
Lesson 1 Other valuation methods. APV method.
Lesson 2 Case Study: Other Valuation methods application. Valuation of shareholdings. Discounts and Premia.
Week 6 Contenuto sessioni on line e on campus
Lesson 1 The Valuation of groups.
Lesson 2 Valuation for accounting purposes - part 1: Impairment Test. Case study: Impairment Test.
Week 7 Contenuto sessioni on line e on campus
Lesson 1 Valuation of Small and New Business.
Lesson 2 Valuation of M&A/LBO operations.
Week 8 Contenuto sessioni on line e on campus
Lesson 1 Valuation of Distressed firms.
Lesson 2 Case Study: the valuation of a Distressed company.
Week 9 Contenuto sessioni on line e on campus
Lesson 1 Valuation of Intangibles. Brands. "Relief from Royalties" method.
Lesson 2 Case Study: the valuation of a brand.
Week 10 Contenuto sessioni on line e on campus
Lesson 1 Valuation of Intangibles. Customer Relationship "Multi Period Excess Earnings" method.
Lesson 2 Case Study: the valuation of a Customer Base.
Week 11 Contenuto sessioni on line e on campus
Lesson 1 Valuation of Intangibles. Licenses. "Real Option" approach.
Lesson 2 Case Study: the valuation of a License.
Week 12 Contenuto sessioni on line e on campus
Lesson 1 Valuation for accounting purposes - part 2: Purchase Price Allocation.
Lesson 2 Case study: Purchase Price Allocation.