Valuation and Acquisitions

Type of study	Follow-up Master
Language of instruction	English
Code	154-0522/02
Abbreviation	VaA
Course title	Valuation and Acquisitions
Credits	5
Coordinating department	Department of Finance
Course coordinator	prof. Dr. Ing. Zdeněk Zmeškal

Subject syllabus

1. Explanation of Basic Concepts (Subject of Valuation, Standards of Value), Approaches to the Valuation, Overview of Valuation Methods.
2. Valuation Process and Description of Its Individual Parts.
3. Projecting Revenues Growth (Analysis of the External and Internal Potential, Factors, Sales Forecasting).
4. Financial Analysis for Valuation Purposes (Basic Indicators, Interpretation, Bankruptcy Models, Pyramidal Decomposition, Analysis of Deviation).
5. Cost of Capital in the Valuation Process (Possibilities of the Cost of Capital Estimation). Valuation of the Company under the Risk Conditions (Risk Adjusted Cost of Capital Method, Method of Certainty Equivalent).
6. Financial Plan Creation (Definition, Description of Financial Plan Process, Key Factors).
7. Assets-based Approach for Company Valuation.
8. Discounted Cash Flow (DCF) Approach (Basic Description of DCF Methods, One-stage and Two-stage Method).
9. Discounted Cash Flow (DCF) Approach (Derivation and Significance of Key Value Driver Formula, Basic Relationships within Key Value Driver Formula). Sensitivity Analysis within DCF Methods.
10. Capitalized Earnings Valuation Methods.
11. EVA Method for Valuation (Estimation of the EVA Indicator, Importance and Use of EVA, EVA within Company Valuation, Sensitivity Analysis).
12. Market Approach and Combined Methods for Valuation.
13. Valuation of the Companies with a Limited Perspective.
14. Mergers and Acquisitions - M&A (Definitions, Types of Mergers, Takeover Defence Tactics, Synergy Effect, Sources of Value Growth within M&A).

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.

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