ENT 3502 Investment, valuation and exit strategies
ENT 3502 Investment, valuation and exit strategies
The programme has a strong focus on economic assessments. This also involves an ability to value various strategies and companies based on different assumptions. One fundamental theme is valuation based on cash flows, risks and the present value method. It is important that one manages to see the connection with project analysis as well as the differences from company valuation. Even though the starting point is much the same there are some vital differences which it is important to keep in mind.
The students shall gain an understanding of the central concepts included in business valuations. Its important that they learn about the various valuation methods and how they are connected. This entails an understanding of concepts such as results, cash flow, risk, required rate of return, financing, contribution methods, strategy and market, exit models upon transfers, as well as markets for financing.
After having completed the course the students shall be able to make a concrete valuation of an enterprise and be able to assess which methods that are suitable under various circumstances. This involves an ability to apply topics such as risk, the capital asset pricing model, beta, cash flow, earnings, expected values, residual values. The students shall also develop the ability to assess various types of financing.
The applied models usually involve various types of assumptions. It is important that students develop a critical ability to consider their own analyses when this is relevant.
- Interest calculation
- Cash flows
- Risk and required rate of return
- Contribution methods
- Valuation models
- Financing methods
- Sale of enterprises
- Financing market
The course includes a combination of lectures, group work, assignment reviews and self-tuition.
A term paper concludes the course for which the students are to perform a concrete valuation and explain methodology and underlying assumptions. The mid-term group work will deal with current problems that are relevant for the term paper.
A basic use of spreadsheets (Excel) is required for exercises. It’s learning will be used. In addition to traditional teaching the lectures will also largely include work on exercises in groups.
Higher Education Entrance Qualification.
Basic business economics and accounting.
| Assessments |
|---|
Exam category: Submission Form of assessment: Written submission Weight: 100 Grouping: Group/Individual (1 - 3) Duration: 1 Semester(s) Exam code: ENT 35021 Grading scale: ECTS Resit: Examination every semester |
| Activity | Duration | Comment |
|---|---|---|
Teaching | 35 Hour(s) | |
Feedback activities and counselling | 10 Hour(s) | |
Prepare for teaching | 155 Hour(s) | Preparations for lectures and term paper hand-in |
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 7,5 ECTS credit corresponds to a workload of at least 200 hours.