Course Description: Application of financial theory to stock/bond valuation, credit analysis, security underwriting, or risk management. Students will complete projects assigned by major financial service firms. Prerequisites: BSAD 181; Business Administration major or minor or Instructor permission; minimum Junior standing.
Section Description: The primary objective of this course is to gain experience in professional equity analysis, M&A consulting, and trading strategies associated with corporate special situations. The course will be team-taught with UVM alumni at Morgan Stanley, DCS Advisory, and Susquehanna Financial Group. You will develop a detailed understanding of the tools used by market professionals and corporate managers to analyze the value of companies and stocks, and the ability to convey this understanding to industry professionals. Each group will complete two projects, each ½ semester: (1) The objective of the first project is the valuation of equity securities using discounted cash flow and relative valuation techniques. You will apply what you learn to the valuation of a specific company, with the goal of becoming an expert on that company. Based on the first half of the course, all students should be able to: a) Develop quantitative models for firm and equity valuation based on DCF and relative valuation. b) Identify and interpret accounting and non-accounting information necessary for valuation. c) Present valuation analyses and assumptions in a professional manner. (2) The second half of the course will split into tracks, two groups per track: The objective of the M&A track is to evaluate a potential acquisition and to provide a full report to the Board. This report will cover standard topics involved in sell-side M&A analysis including precedent transactions, comparable companies, accretion / dilution analysis, and LBO modeling. a) Understand various types of analyses used in the evaluation of potential acquisitions – precedent transactions, comparable companies, LBO modeling, etc. b) Answer whether to pursue a merger transaction, and the characteristics of the transaction (type and financing). The objective of the special situation track is to cover standard topics in the evaluation of a spin-off transaction from a trader’s perspective including motivation and valuation methodologies. a) Understand how a spin-off potentially unlocks value, and demonstrate this value using precedent transactions, comparable companies, DCF modeling, LBO modeling, etc. b) Answer whether an upcoming spinoff should be purchased and the potential return.
|TR||13:15 - 14:30||KALKIN BUILDING 322|
Instructor(s): Andrew Prevost
Meeting Dates: 26 Aug 2019 - 06 Dec 2019