Valuing a Business
Ian Giddy has taught finance at NYU, Columbia, Wharton, Chicago and in 30+ countries abroad for the past two decades. He was Director of International Fixed Income Research at Drexel Burnham Lambert from 1986 to 1989. The author of more than fifty articles on international finance, he has served at the International Monetary Fund and the U.S. Treasury and has been a consultant with numerous corporations and financial institutions in the U.S. and abroad. As a banker and consultant he has been involved in the application of applied corporate finance in the USA, Europe and Asia. He is the author or co-author of The International Money Market , The Handbook of International Finance, Cases in International Finance , Global Financial Markets, Asset Securitization in Asia and The Hudson River Watertrail Guide.
for Relationship Managers
Prof. Ian Giddy
What is my client company's value? What are the ratios used by analysts to determine what a company is worth? How valid is the discounted present value approach? How can we value a company as a going concern, and how does this change in the context of a potential acquisition or restructuring?
This program was designed for a broad range of relationship
managers within Union Bank of California and was intended to teach participants how to expand
the bank’s share-of-wallet within their target client-base.
Participants should be fully proficient with Excel and/or an HP-12C (or equivalent) financial calculator. There are no other prerequisites other than the willingness to learn and participate in the program and the determination/fortitude necessary to tackle a rigorous program.
Morning: Applying Valuation Techniques to Client Situations
Afternoon: Valuation Methods
Morning: Valuing a Public Company in Transition
Afternoon: Valuing a Private Company
Module 2 (1 day)
Relationship Management in Action
Morning: Using the Tools of Corporate Finance to Identify Client Needs
Afternoon: Using the Bank’s Resources to Solve Client Problems
Introduction and Overview
Applying Valuation Techniques to Client Situations
Valuation and financing choices
Case study: Photronics
A technology company is seeking additional financing. The bank has been asked to price a $150 million loan, but the RM has learned that a convertible bond is also under consideration. What effect is each likely to have on the company’s value, and how can this analysis be used as a selling tool?
Discounted free cash flow analysis
When to use what techniques
Case study: Cap des Biches Acquisition
Review of Concepts and Applications
Valuing a Public Company
Valuation in an Acquisition Context
Valuing a Public Company in Transition
Case study: Valuing ATT Wireless
How should ATT Wireless be valued? What can the balance sheet and other financial statements tell us, and how can we project the company's free cash flows to estimate its going-concern worth? What factors could change this valuation? What would the company be worth to an acquirer? How can this approach help drive banking deals?
Valuing a Private Company
The Venture Capital Method
The controlling owner of this Seattle-based plasma technology company is seeking a means of realizing its corporate value. What would it be worth in the 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? What could the bank bring to the deal?Review and Summary