Theory and Practise of Business Valuation & Strategic Performance Management

Dr. Stefan Gros | WS 2012/2013 | Universität Ulm

Theory and Practise of Business Valuation & Strategic Performance Management | Dr. Stefan Gros, Universität Ulm | WS 2012/2013Seite 2

Structure

10.2012

11.2012

12.2012

01.2013

1. Foundations of Value

1.1. Why Maximizing Value?1.2. Fundamental Principles of Value Creation1.3. Return on Invested Capital, Growth

2. Core Valuation Techniques 2.0. Basics of „Unternehmensbewertung“2.1. Frameworks for Valuation Enterprise DCF,

Economic Profit Models, APV2.2. Reorganizing the Financial Statements2.3. Analyzing of Historical Performance 2.4. Forecasting Performance2.5. Estimating Continuing Value2.6. Estimating Cost of Capital (Equity/Debt) 2.7. Review Calculating Results and Using Multiples

3. Strategic Performance Management

3.1. Performance Management and Portfolio Strategy3.2. Creating Value through Mergers and Acquisitions3.3. Capital Structure

Reading & ExcercisesKoller, Goedhart, Wessels, Valuation, Wiley 2010

Chapter 1- 6

Chapter 7-10

Review Questions

Chapter 11-14

Review Questions

Additional Exercises

Chapter 19-23

Review Questions

EXAM-REVIEW

Theory and Practise of Business Valuation & Strategic Performance Management | Dr. Stefan Gros, Universität Ulm | WS 2012/2013Seite 3

Structure

A „Block-Session“ consists of four parts: Lecture, which aims at knowledge transfer, based on notes and the required reading Review questions, which stresses major, exam relevant learnings Excercises with homework with solutions explained in class

Lecture notes and review questions will be provided as pdf. download

EXAM: 90 min, consists of verbal and quantitative parts, mainly based on the lecture, review questions and excersises. Master students will get one additional question.

In case of interest in student internships with audit companies, M & A departments in industry or investment banks, please feel free to contact me directly.

In case of questions, please contact me via e-mail: stefan.gros@dr-gros.de

Theory and Practise of Business Valuation & Strategic Performance Management | Dr. Stefan Gros, Universität Ulm | WS 2012/2013Seite 4

Learning Outcomes

Students will learn to use basic valuation and finance terminology in an adequate and critical manner.They will develop an understanding of the connections within a business valuation and find out the relation between finance and strategy.Students will be able to understand business valuation as a guideline of business decisions and to conduct valuations. The comprehensive connections between the different sub-categories of business science will be made transparent.They will learn how to develop and apply portfolio strategies and get an understanding of corporate performance. Furthermore they learn the analysis of Mergers & Acquisitions, approaches for improving the business performance and the design of capital structures as a means to support the corporate strategy.After finishing the course, students will possess necessary basics for the Certified Financial Analyst (CFA), an additional qualification which is very important and relevant in the professional life.

Theory and Practise of Business Valuation & Strategic Performance Management | Dr. Stefan Gros, Universität Ulm | WS 2012/2013Seite 5

Required ReadingsKoller/Goedhart/Wessels: Valuation, Measuring and Managing the Value of Companies, University 5. Ed., Wiley 2010Koller/Goedhart/Wessels: Valuation, Workbook, Wiley 2011

Palepu/Healy/Peek: Business Analysis and Valuation IFRS edition, 2010 South Western Cengage Learning

Müller-Stewens/Lechner Strategisches Management, Stuttgart, 2. Auflage 2003Müller-Stewens/Brauer, Corporate Strategy & Governance, Stuttgart 2009

Further readings:

Adolph/Mainnardi: The capabilities Premium in M & A, Strategy+Business Issue 66, Spring 2012Eayrs/Ernst/Prexl: Corporate Finance Training, 2. Aufl., Stuttgart 2011Prexl et al, Financial Modeling, Stuttgart 2010.Ernst/Schneider/Thielen: Unternehmensbewertungen erstellen und verstehen, 4. Aufl., München 2011Drukarczyk/Schüler: Unternehmensbewertung, 6. Aufl., München 2009

Wild, Subramanyam, Halsey: Financial Statement Analysis, 8th Ed. Mc Graw Hill 2003Pettit, Strategic Corporate Finance, Applications in Valuation and Capital Structure, Wiley 2007Drukarczyk/Ernst (Hrsg.): Branchenorientierte Unternehmensbewertung, 3. Aufl. München 2010Hommel/Braun: Unternehmensbewertung, Frankfurt am Main 2005.Brealey, Myers/Allen: Principles of Corporate Finance, Global Edition 2011