| Credit: | 4 |
|---|---|
| Status: | Compact CSF - elective EEI and EP - elective English ET - elective F,FM and B - elective Masters - all MEF - elective Semester - summer |
| Course supervisors: | Ing. Tomáš Fencl CFA, MBA |
| Course homepage: | JEM161 |
| Literature: | |
| Description: | This is the syllabus for the condense version of the course, taught in two days – the scope of the lectures however is the same as the original 13-week class (excl. team presentations). My Mission: The topic of private equity (and venture capital) is not only interesting, but I believe highly relevant to IES graduates. I hope you find the course useful in one (or more) of these three use cases – you learn how: investment professionals approach PE/VC investments, you can apply the learning to “entrepreneurship via acquisition”, and the topics covered apply to broader corporate strategy DAY 1: Lecture 1: What is Private Equity (and Venture Capital)? Some historical perspective (or what do Crusades have to do with any of this?) How do PE/VC funds work Lifecycle of a fund: Institutional fund raising / asset management VC vs. PE; What is a “Family Office”, a “Search Fund” Lecture 2: Investment strategies & opportunity screening How do PE firms make money? How is VC different from PE? PE Investment strategies and Investment criteria Auctions vs. proprietary sourcing Lecture 3: Role of Debt Debt capacity (how much debt can you raise?) and leverage ratios Cost of debt (hint: not just the interest you pay) Alternative sources of debt – an overview Capitalization table & liquidation preference Lecture 4: Valuation in PE/VC Context Price vs. Value Value to who? Stakeholders’ perspective Overview of basic valuation techniques: pro’s and con’s Difference between PE and VC approach to valuation DAY 2: Lecture 5: Acquisition Process From the first contact to a Deal Key parties to the table Difference between an auction and negotiated transaction Due diligence Lecture 6: Acquisition Agreement Transaction structure: What you buy (assets or shares) and how you pay (cash or shares) and how much (fixed price vs formulae) Buying whole business vs control vs minority stake (PE vs VC) Deal protection: Representation & Warranties and Remedies (Baskets, de minimis, caps) Conditions precedent & Closing Lecture 7: Monitoring & Exiting investments Monitoring: Management vs. Board roles Monitoring: The Good, the Bad and the Ugly Timing the exit: determinants Ways to exit: Trade sale, secondary LBO, IPO, Recap DAY 3: Panel with Industry Practitioners Speakers to be announced |
