CORPORATE ECONOMICS - ADVANCED COURSE
Learning outcomes of the course unit
a. Knowledge and understanding: the course presents and deepens the topics of company valuation, strategic business units valuation and projects valuation, with reference to different possible methods and related problems, for both quoted and not quoted companies. The aim is to allow the student in learning the models of market and internal company valuations.
b. Applying knowledge and understanding: at the end of the course the student should be in a position to determine the economic value of business capital, of single strategic units and production factors for different purposes (establishment, going concern, transfer and acquisition, winding up and other extraordinary operations as well) by using the main valuation models generally accepted as a professional consultant, business collaborator, stockholder. Furthermore the student would be sensitizes on the critical issues of the valuation process.
c. Making judgement: the student through the acquired knowledge should be able to apply the logic and valuation procedure to every specific real situation, autonomously and independentlyfrom standard and stereotyped principles, therefore to face every real case he will meet in the professional activity, forging his own judgement on strong economics, accounting, ethic foundations and so on.
d. Communication skills: the student should acquire the attitude to outline, analyze and in problem solving, formulating a final efficient valuation report, with suitable terminology, easily interpretable from different users, with abilities to present, dialogue,communicate, showing clearly the logic employed, the acquired results, their accuracy and fairness. The acquisition of communication skills avails itself of students active participation in the learning process trought discussion of real cases and presentation of individual or team work on topics proposed by the teacher or the students themselves.
e. Learning skills: the course involves widely an active method of teaching. The purpose is to favor both the individual and the team study, therefore to make easier the learning process and stimulate the student intellective and operational capabilities, who could subsequently profitably participate to specialization courses of master and PH.D. degrees.
Course contents summary
The business valuation is a central theme of Economia d’ azienda. The course aims to present and deepen the topics related to economic entities valuation, stressing the fundamental principles and the unity of the valuation process even though in the multiplicity of different methods and techniques.
Particularly the course aims to explain the “independent valuation” for the business transfer, mergers and acquisitions, and the strategic valuation for management decisions, taking into account the historical evolution of studies, researches and professional practices on valuations, both at national and international level.
It deals also with special topics, typical of “economic capital” determination, such as “economic value added”, “income capacity of industries and more generally of economic sectors”, “securities investments appraisal” and so on.
Subsequently it refers specifically at the valuation of economic entities of different production sectors, commercial, industrial, services, banking, financial and insurance ones.
1. Business growth, new value and economic ethics.
2. Historical analysis of value theory.
3. Economic value of business capital.
4. Strategic capital and business value determination. The hypothesis of transfer and acquisition:
4.1 direct and indirect methods;
4.2. income methods;
4.3. financial methods;
4.4. patrimonial methods;
4.5. mixed methods.
5. Characteristic magnitudes of business valuation formula:
5.1. general value of economic capital and flow variables;
5.2. discount and capitalization rates;
5.3. time dimension.
6. Values of the intangibles.
7. Economic value added (EVA).
8. Value production and profitability of different industries.
9. Economic capital determination of groups and holding companies.
10. Control premiums, minority discounts and lack of marketability discounts in stocks valuation.
11. The integrated valuation judgement.
12. The valuation report.
13. Cases referred at industrial and service entities, financial , credit and insurance companies.
GALASSI G. (a cura di), Lo sviluppo delle imprese tra opportunità e vincoli, Giuffrè, Milano, 2000.
ZANDA G., LACCHINI M., ONESTI T., La valutazione delle aziende, VI edizione, Giappichelli, Torino, 2013, eccettuati capp. 23 e 24.
Con riferimento alla V edizione, Torino 2005, non vi sono capp. da omettere.
Other didactical refences proposed by the teacher.
ANTIL N., LEE K., Company Valuation under IFRS, Harriman House, Petersfield, 2005.
CATTANEO M., Principi di valutazione del capitale d’impresa, Il Mulino, Bologna, 1998.
DONNA G., La creazione di valore nella gestione dell’impresa, Carocci, Roma, 1999.
FERRERO G., La valutazione economica del capitale d’impresa, Giuffrè, Milano, 1966.
FRYKMAN D., TOLLERYD J., Corporate Valuation. An Easy Guide to Measuring Value, Prentice Hall, Englewood Cliffs, 2003.
GALASSI G., Misurazioni differenziali, misurazioni globali e decisioni d’azienda, Giuffrè, Milano, 1984.
GUATRI L., 50 anni di valutazioni aziendali. Dal pionierismo all’internazionalizzazione, Egea, Milano, 2006.
GUATRI L., BINI M., La valutazione delle aziende, Egea, Milano, 2007.
KOLLER T., GOEDHART M., WESSELS D., Valuation. Measuring and Managing the Value of Companies, Wiley, New York, 2005.
LUNDHOLM R., SLOAN R., Equity Valuation and Analysis, McGraw Hill, New York, 2004.
VIGANÒ R., Il valore dell’azienda, Cedam, Padova, 2001.
WEST T.L., JONES J.D., Handbook of Business Valuation, Wiley, New York, 1992.
Assessment methods and criteria
The control of the learning process is through a written exam, where the student will be asked with development of relevant points of the syllabus, demonstrating the acquired knowledge by means of answers to open questions, with discussion and interpretation of the results achieved during the course.