- resources in finance

Paul Weiss

Applied Corporate Finance

Prof. Ian Giddy,
New York University

This three-part seminar offers an overview of the techniques of corporate finance with a special emphasis on valuation and the sources of value creation in corporate financing and mergers and acquisitions. We introduce the key decisions -- investment, financing and risk management -- that contribute to shareholder value. Running through the key computations and concepts of corporate finance, we discover the assumptions behind common models and ratios used in valuation of a company, and in leveraged buyout analysis. We apply this to several case studies, revealing also how an acquisition or other restructuring can alter the value of a company -- for better or for worse.

Prof. Ian Giddy is a graduate of the University of Michigan (MBA 1972, PhD 1974) and the University of the Witwatersrand (BSc 1970). He has taught finance at NYU, Columbia, Wharton, Chicago and in over 40 countries worldwide during the past thirty years. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. He is the author or co-author of numerous articles and books, including The Handbook of International Finance, The International Money Market, Cases in International Finance, Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide. He and his wife are the founders of Cloudbridge, a nature reserve in Costa Rica.

Method and Schedule
Sessions will start at 6:00pm and finish at 9:00pm. The lectures will offer structure, the discussions will amplify, and the case studies will apply tools and concepts to real-world applications. Participants are expected to attend each session in full. We will work in teams to resolve corporate finance issues, including gauging the appropriate capital structure for a company, estimating enterprise value, and arranging the leveraged finance for a buyout.

Background Reading
A Company in One Page
Notes on cost of capital and capital structure
Methods of Corporate Valuation
LBO Alchemy

Course Outline

Applied Corporate Finance

Session Topics  Assignments and Materials
Mar 13, 2007
Corporate Finance, Investments and Financing
Computing Funding Costs and the Cost of Capital
A Company in a Nutshell: Key Accounting Numbers and How They Relate to Shareholder Value
Investment Decisions
Seeking the Optimal Capital Structure
Structured Finance
Handout 1
Case studies
Financing Photronics
Cost of Capital

Mar. 20, 2007
Valuing a Business
Valuation as a Strategic Tool
Tools & Techniques

- Asset-based
- Comparables
- Cashflow methods
Valuation in the Context of an Acquisition
Handout 2
Case study
Selling Active Generation
P/E Ratios
Industry ratios

April. 17, 2007
Leveraged & Mezzanine Finance
High-Leverage Finance
Senior, Mezzanine and Private Equity Finance

Debt Capacity Analysis

The "Venture Capital Method" in Private Equity Finance
Leveraged Acquisitions and Buyouts
Handout 3
Case studies
Ubuntu Properties
The Leveraged Buyout of ISS
LBO capacity spreadsheet | | | | contact
Copyright © 2007 Ian H Giddy. All rights reserved.