Course Catalog and Schedule



Global Entrepreneurial Finance (FINC-945-0)
1.00 Credit
TCE BidStats

Description:

This course counts toward the following majors: Finance

This course is designed to intersect three areas of interest: (a.) Entrepreneurial Finance and Private Equity including Entrepreneurial Buyouts; (b.) Family and Closely-Held Firms, and; (c.) International Finance with special emphasis on cross-border valuation and access to finance. The course is, by nature, a finance course that deals with entrepreneurial, family, and closely-held firms in an international context including both developed and emerging market countries where institutions and property rights are weak. The core question behind the course is: “How do entrepreneurial managers, family firms, closely held firms and those who finance them design and execute transactions that effectively match opportunities and resources in an international context?” An overreaching insight of the GEF course is that the notions of risk and reward are as important in privately-held as in publicly held firms. In privately-held firms and closely-held firms, however, entrepreneurs and financiers are often forced to make assumptions based on incomplete data. The course will provide you with the tools necessary to value companies domiciled in countries around the world. The aim of the course is for students to understand the motivations, decision processes, transaction execution, and valuation consequences of financial, business, and organizational restructuring done by buyouts, family firms and closely-held firms in an international context. The course facilitates developing the ability to plan, evaluate, and execute transactions using financial modeling and quantitative techniques. The course does not deal with venture capital, early-stage financing or entrepreneurship concepts.

Who Should Take This Course?

GEF is aimed at students who plan to start a business at some point in their careers, students who plan to work for or finance an entrepreneurial firm, and students who plan to work for an established firm. All these aspects are developed in an international context framework where institutions play a he role in shaping financial decisions. GEF is helpful not just for students who plan to work in international firms; even students who plan to work in their home countries can learn a great deal by comparing and contrasting opportunities, financing contexts, and legal structures across different countries. The course is also designed for students who may be involved in family firms and closely held companies in a variety of roles, including founders, shareholders, or managers of their own family’s firm, as well as non-family managers and employees, investors or business partners (e.g. private equity investors, strategic buyers or financial buyers), and advisors of various kinds (e.g., investment bankers, board members or consultants). Finally, the course is also designed for future senior executives that manage global financial operations, the general managers working within these firms, and the intermediaries advising or providing capital to these firms.

Financial topics covered include:

• Valuing Cash Flows in an International Context: Cross-Border Valuation

• Assessment of Country Risk and Expropriation Risk. Legal Issues

• Capital Structure Decisions: Comparison of Different Sources of Capital

• Impact of Funding Sources on Performance: Private Placements and Rule 144a

• Private Equity Terms and Mechanics

• Contracting Problems and Deal Structures. Negotiating Deals

• Entrepreneurial Buyouts and Private Equity

• LBO Modeling and Valuation

• Real Options in International Settings

• Valuation of Subscription and Franchise Businesses

• Public vs. Private Equity: The Decision of Where to List a Stock.

• The Importance of ADRs and GDRs: Capital Flight

• Valuation of Family Firms and Closely-Held Firms: Control Premium, Minority Discount and Illiquidity Discount

• Partnering with Public and Private Investors

• Control-Enhancement Mechanisms: The Role of Dual Class Shares and Pyramidal Ownership



Prerequisites:
All Students: FINC-440-0 OR ( FINC-441-0 AND FINC-430-0 )

Download Schedule Information

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Academic Year Term   Course ID Title Sec ID   Credits Syl Instructor Times Campus Location Mand 1st Exam
2013-2014 Fall 2013 FINC-945-0 Global Entrepreneurial Finance 81 1 Liberti, Jose Maria Thu 06:30 PM - 09:30 PM Evanston Jacobs (G42) N Thursday Dec. 12 @ 6:30 - 9:30pm Rm G45
2013-2014 Spring 2014 FINC-945-0 Global Entrepreneurial Finance 61 1 Liberti, Jose Maria Mon 01:30 PM - 04:45 PM Evanston Jacobs (G36) N