Swiss Banking School: Prof Ian Giddy on Investment Banking

Swiss Banking School
at

Carnegie-Bosch Institute

Background Materials on Corporate Finance

giddy.org

Swiss Banking School
International Wealth Management Executive MBA
Session on Investment Banking

Prof. Ian Giddy
New York University

How are the tools and techniques of investment banking relevant to owners of closely held companies? How can high net worth families manage transitions of ownership and financing in their private businesses?

Recommended Books

Doing Deals: Investment Banks at Work by Eccles and Crane (Harvard Business School Press)

Finance for Executives by Hawawini and Viallet (Southwestern)

Pre-Course Reading:

"A Note on the Initial Public Offering Process" by Joshua Lerner
(Harvard Business School Press 9-200-018)

Methods of Corporate Valuation

Background Study:

Finance for Executives Ch 1 and 2

A Company on One Page (example)

On-line Intro to Financial Statements

On-line Financial Math

Schedule and Case Study Assignments

Time	Topic	Remarks
08:30-10:00	How can investment banks finance management buy-outs and other forms of corporate ownership restructuring?	Case: Cap des Biches (B) Discussion of what it takes to succeed in LBO financing and other asset-based investment banking services
10:30-12:15	IPO underwriting and advisory services	Case: EASEL Corp. Discussion of IPO success factors and how the underwriting and distribution process works
12:15-13:30	Lunch
13:30-14:30	Valuing a private company in an IPO or merger context	Discussion of Argus share pricing and merger valuation analysis
14:30-16:00	Private company exit choices to maximized realized value	Group analysis of exit strategies and valuation of Flexics

Case Study: Cap des Biches (B)
Assignment: Can the managers of GTI-Dakar succeed in financing their acquisition of the company through a leveraged buy-out (LBO)?

Case Study: EASEL Corp - Going Public (A) ( HBS 9-291-041 )
Assignment: Read the part of the case having to do with selection of investment bankers for an IPO. How can a company manage the IPO process? What should a company look for in its investment bankers?

Case Study: Flexics
Assignment: The controlling owner of this Seattle-based plasma technology company is seeking a means of realizing its corporate value. What is it worth in the IPO market, and could it be worth more to LBO investors? What is Flexics worth as an acquisition target to Photronics, and how much of a premium should be paid? What restructuring could add value?
Spreadsheet: valuation.xls
Spreadsheet: flexicsdata.xls