Learning objectives
From a general perspective, the course aims to provide a method for developing a company valuation process, both with reference to performance under operating conditions and at times in the company's life when it is necessary to estimate the value of economic capital.
More specifically, the learning outcomes are related to the acquisition of the following knowledge and skills
- identifying and structuring the logical steps leading to the elaboration of a strategic analysis and business valuation;
- knowledge of the main characteristics of the tools for analysing the external environment, the sector and competitors, resources, skills and business processes;
- ability to understand the characteristics of the various contexts in which to apply evaluation methods;
- knowledge and ability to apply the main business valuation methods.
Prerequisites
none
Course unit content
Business valuation is the method of estimating the economic value of a company. Its practice helps companies make effective decisions and contributes to planning the development of their business activities. Valuation is not an uncommon process in organisations, whether a start-up or a large enterprise, and is of great importance in business structuring, dispute resolution, mergers, acquisitions, obtaining credit from financial institutions and tax planning. In addition, an entrepreneur needs an accurate value to analyse potential growth and opportunity costs, planning for future expansion and eventual transition.
Business valuation is inevitably based on measuring information about the company's economic future, which is normally contained in a business plan. It may be specifically prepared by management at the time of the sale/acquisition or be an integral part of the company's current performance measurement policy.
Full programme
Aims of Evaluation
Valuation Approaches and Methods
Capital Method
Cash Flow Method
Economic Profit Method
Comparative Analysis Method
The Business Plan
Business Cases and Applications
Bibliography
Damodoran A., "La valutazione delle aziende", Apogeo, Maggioli Editore, 2010.
Teaching methods
Teaching is allocated 6 ECTS; the total workload for the student is therefore equivalent to 150 hours. This includes:
(a) participation in theoretical and applied lectures,
b) individual study and examination preparation (self-study).
Approximately 50% of the classroom lectures are expository lectures (theory) and 50% are practical lectures (exercises/problems/case studies).
Active participation and discussion of the course content is encouraged. Therefore, study of the given literature and suggested readings before each lecture is strongly recommended.
Assessment methods and criteria
The final grade will be the sum of its components:
50% will be determined by a single oral discussion on the subjects covered in the classroom
50% will be determined by group work on a practical business case.
More specifically, the part concerning group work (or in any case also carried out individually) may be carried out on one of the cases presented during the lectures or on any case that may concern the development of an analysis relating to the subject covered in the course.
The case and its solution will be submitted as a written paper by the date of the roll call chosen for the oral test and may contribute 15/30 to the final grade.
In the case of presentation of the paper at group level, the grade will be counted for each individual member of the group to a similar extent.
Other information
no
