Terminated in academic year 2021/2022

Valuation and Acquisitions

Type of study	Follow-up Master
Language of instruction	English
Code	154-0522/01
Abbreviation	VaA
Course title	Valuation and Acquisitions
Credits	4
Coordinating department	Department of Finance
Course coordinator	doc. Ing. Miroslav Čulík, Ph.D.

Subject syllabus

1. Introduction to the Valuation. Purposes of a Valuation. Standards of Value. Premises of Value. Effective Day. Basic Approaches to Value.
2. Valuation Process. Sales Forecasting (Projecting Revenues Growth). Analysis of the External Potential. Relevant Market. Analysis of the Internal Potential. SWOT Analysis.
3. Financial Analysis for Valuation Purposes. Nonoperating Assets. Financial Plan. Component and Goals of a Financial Plan.
4. Cost of Capital. Characteristic and Estimating. Basic concepts. Build-Up Summation Model. Capital Asset Pricing Model. Arbitrage Pricing Theory. MM I., MM II., MM III.
5. Income Approaches. Basic Concepts. DCF Methods. FCF Estimation. DCF Equity, DCF Entity, Adjusted Present Value.
6. Multiphase DCF Methods (2-phases Method). Determination of a Continuing (Terminal) Value. Sensitivity Analysis.
7. Economic Value Added (EVA) Concept. EVA Methods within Valuation. Differencies between DCF Methods and EVA Methods. Sensitivity Analysis.
8. Capitalization of Earnings Method. Simple and Analytic Version. Company Valuation in Risk Terms.
9. Asset Approach. Book Value Method. Adjusted Book Value Method. Substantial Value Method. Liquidation Value Method.
10. Market Approach. Advantages and Disadvantages. Basic Implementation. Computation of Multiples.
11. Mergers and Acquisitions (M&A). Introduction. Types of Acquisitions. Takeover Defences. Synergistic effect. Sources of Value Growth.
12. Valuation of Companies with a Limited Perspective. The Possibility of a Real Options Utilization within Company Valuation.

Literature

DLUHOŠOVÁ, Dana et al. Financial Management and Decision-making of a Company: Analysis, Investing, Valuation, Sensitivity, Risk, Flexibility. SAEI, vol. 28. Ostrava: VSB-Technical University of Ostrava, 2014. 258 p. ISBN 978-80-248-3619-5.
HITCHNER, James R. Financial Valuation, Applications and Models. 3rd ed. New Jersey: John Wiley & Sons, 2011. 1320 p. ISBN 978-0470506875.
KOLLER, T., M. GOEDHART a D. WESSELS. Valuation: Measuring and Managing the Value of Companies. 6th ed. New York: McKinsey & Company Inc., 2015. 848 p. .ARZAC, E. R.: Valuation for mergers, buyouts and restructuring. J. Wiley, 2003.
DAMODARAN, A.: Investment valuation:and Techniques for Determining the Value of Any Asset. John Wiley & Sons, Inc., 2012.
MEITNER, M. The Market Approach to Comparable Company Valuation. Physica-Verlag, 2006.
PRATT, S.P., NICULITA, A.V.: Valuing a Business: The Analysis and Appraisal of Closely Held Companies. 5th Ed. McGraw-Hill, 2007.
PRATT, S.P:, GRABOWSKI, R.J.: Cost of Capital: Applications and Examples. 4th Ed. Wiley, 2010.
RAWLEY, T.; GUP, B.E.: The Valuation Handbook: Valuation Techniques from Today's Top Practitioners. Wiley, 2009.

Advised literature

ARZAC, R. Enrique. Valuation For Mergers, Buyouts, And Restructuring. 2nd ed. New Jersey: John Wiley & Sons, 2007. 384 p. .
DAMODARAN, Aswath. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3nd ed. New Jersey: John Wiley & Sons, 2012. 992 p. ISBN 978-1118130735.
DAMODARAN, Aswath. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance. 2nd ed. New Jersey: John Wiley & Sons, 2006. 696 p. .
REILLY, R., SCHWEIHS, R.: Valuing Intangible Assets. 1st Ed. McGraw-Hill, 1998.

back to search page