154-0522/01 – Valuation and Acquisitions (VaA)

Gurantor departmentDepartment of FinanceCredits4
Subject guarantorprof. Dr. Ing. Zdeněk ZmeškalSubject version guarantordoc. Ing. Miroslav Čulík, Ph.D.
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageEnglish
Year of introduction2009/2010Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
CUL33 doc. Ing. Miroslav Čulík, Ph.D.
GUR022 Ing. Petr Gurný, Ph.D.
KRE330 doc. Ing. Aleš Kresta, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+1

Subject aims expressed by acquired skills and competences

This course focuses on deepening of basic knowledge about firm valuation obtained within bachelor study. The aim of the course is to learn students to apply advanced valuation approaches and methods in order to analyze the firm value.

Teaching methods

Lectures
Tutorials

Summary

The content of the course consists of theoretical basics of company valuation, valuation approaches and methods, mergers and acquisitions issues, including accounting and tax aspects.

Compulsory 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. ISBN 978-1118873700.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.

Recommended literature:

ARZAC, R. Enrique. Valuation For Mergers, Buyouts, And Restructuring. 2nd ed. New Jersey: John Wiley & Sons, 2007. 384 p. ISBN 978-8126524129. 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. ISBN 978-0471751212. REILLY, R., SCHWEIHS, R.: Valuing Intangible Assets. 1st Ed. McGraw-Hill, 1998.

Way of continuous check of knowledge in the course of semester

E-learning

Další požadavky na studenta

There are no other requirements on the students.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

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.

Conditions for subject completion

Full-time form (validity from: 2009/2010 Winter semester, validity until: 2013/2014 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Exercises evaluation and Examination Credit and Examination 100  51
        Exercises evaluation Credit  
        Examination Examination  
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.FormStudy language Tut. centreYearWSType of duty
2018/2019 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2017/2018 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2016/2017 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2015/2016 (N6202) Economic Policy and Administration (6202T010) Finance P English Ostrava 1 Compulsory study plan
2014/2015 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2013/2014 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2012/2013 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2010/2011 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan
2009/2010 (N6202) Economic Policy and Administration (6202T010) Finance (01) Finance P Czech Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Subject block without study plan - EKF - P - en 2019/2020 Full-time English Optional EKF - Faculty of Economics stu. block