Rizvi Institute of Management Studies & Research

Teaching Plan – Semester III

Tuesday, 4th July 2017 – Sunday, 5th November 2017

Faculty Details
Name of the Subject Corporate Valuation and Mergers & Acquisitions
Name of Faculty Bhaskar Sinha
Mobile 7045641699
Email bhaskarsinha@rmi.rizvi.edu.in

Assessment Details
Type of Paper Core

Duration 3 Hours

Marks
40
Internal Assessment
Marks
60
Written Assessment

Total Marks 100

Reference Material
Sr. No. Name of the Book Author

1 Damodaran on Valuation Aswath Damodaran

2 Corporate valuation Prasanna Chandra

3 Mergers and Acquisitions Basics Frankel

4 Applied Mergers and Acquisitions Bruner

Classroom Requisites for Students

Sr. No. Requisites

1 Calculators

2 Excel

1
 Session Plan

Session No. Session Coverage Session Requisite

Overview – Valuation, processes and types,legal

1 one
framework

Financial Statement (Cash Flow) , Leverage and

2 one
working capital based assessment.

Comparative valuation- how and when, ration analysis

3 One-two
,importance of P/E;EV/EBTIDA

Discounted cash flow- two stage model,H-stage

4 Two
model,FCFF/FCFE, Gordon’s growth model etc

5 Other non-CF based valuation- how and when One

Intangible valuations -goodwill, brand

6 one
banks/finservices, e-commerce.

7 Internal Examination / case # 1 One

Valuation for Mergers and Acquisitions.

 Asset-based and balance-sheet approaches
 Market value approaches
 Multiples and comparables
 Enterprise value and EBITDA
8  Establishing required rates of return Two - three
 Free cash flows to equity
 Free cash flows to firm
 Dividend- and cashflow-discount models
 Real option approach

 Distress situations
 Blank-check acquisition companies
 Break-up valuation
9 One
 Synergy analysis
 Sensitivity analysis

Internal Examination # 2 Problem based (20

10 ONE
Marks)
Evaluating Acquisitions, and Undertaking Due
Diligence

 What are the target's value-drivers?

 Required performance improvements
11 embedded in acquisition premiums Two
 Competitive conditions that must drive
valuations
 What due diligence can reveal – and what
it cannot

2
 Leveraged Buy-Outs
 The different approaches of financial
vs strategic buyers
 The leverage effect
 How to structure and price the
leverage for an acquisition or buyout
 Exercise: spreadsheet-based debt
capacity analysis for leveraged
12 Two-three
finance
 Focus: synthetic ratings and debt
pricing, mezzanine and private equity
finance
 Case Study: The LBO of ISS
 Management vs outside equity
 Valuation in LBOs: “The VC Method”
 Pay down and exit analysis.
Valuation for Mergers and Acquisitions.
 Asset-based and balance-sheet approaches
 Market value approaches
 Multiples and comparables
 Enterprise value and EBITDA
13  Establishing required rates of return Two - three
 Free cash flows to equity
 Free cash flows to firm
 Dividend- and cashflow-discount models
 Real option approach

 Distress situations
 Blank-check acquisition companies
 Break-up valuation
14 One
 Synergy analysis
 Sensitivity analysis

Internal Examination # 1 one Problem

15 ONE
based (20 Marks)

3
 Internal Assessment

Sr. Type of Internal Group /

Task Marks Timeline
No. Assessment Individual

Internal
1 Problems based 10 Individual
assessment

Internal
2 Problem/case based 10 individual
Assessment

3 Project Submission/viva 20 Group