Code:

BERMASC005

Study year:

2007-2008

Long name:

Real Options and Private Equity

Short name:

Real Options and Private Equity

ECTS:

5

Language:

English

Lecturer(s):

Prof. dr. J.T.J. Smit

Coordinator:

Myra Lissenberg-van der Pennen

Faculty:

ESE

Number of lectures:

10

Hours per lecture:

seminar, 5 hours per week

Goal:

The course is intended for students who specialise in corporate finance and want to learn the latest developments in company valuation and strategy. This course follows a problem-solving approach that synthesizes principles from real options theory, game theory, and strategy for the valuation of private acquisitions.

Course contents:

Private Equity is a long-term commitment in the financing of firms that are not traded in public financial markets.

Broadly defined, private equity can be divided into two important categories: venture capital - the equity participation in young companies that are not yet mature enough to be traded in financial markets - and leveraged buyouts, or acquisitions of firms financed with a higher proportion of debt.

In this seminar we explore new valuation techniques and illustrate these techniques in a wide variety of examples, ranging from going-private transactions, auctions, to buy-and-build acquisition strategies. Students are expected to present pieces of the literature or case applications, ask questions, and express their ideas in class discussions.

Examination:

On the basis of assignments, participation and presentations

Literature:

Han T.J. Smit and Lenos Trigeorgis, Strategic Investment Real Options and Games, Princeton Universtity Press, 2004, 472 pages. ISBN: 0-691-01039-0.

Articles will be announced at the start of the lecture.

Additional Information:

There will be a maximum number of participants (10).