Study

This class aims to prepare students to conduct financial valuation and to advise those doing so. Financial valuation techniques—interpretations of financial performance that allow one to assess value—are central to how investors allocate capital, how investment bankers advise companies, how risk is managed, how companies make strategic decisions, and many more parts of the business world. And the manner in which these analyses are conducted has critical implications for the legal work that follows. This class will make students critical consumers of financial analysis, preparing them to anticipate and address the legal consequences of analytical and strategic decisions. We will begin by establishing basic finance and accounting concepts necessary to understand the tools we will use throughout the course. Then we will turn to the standard valuation techniques that are now ubiquitous in the daily work of corporate advisors. Next, we will consider the financial and legal issues that arise in connection with an initial public offering. We will then turn to a second transactional type heavily depending on valuation analysis: a merger. Finally, we will close the course by giving extensive consideration to the finance, advisory, and legal implications of a leveraged buyout. The class employs a case study of current events, with the goal of giving students financial and legal fluency in the standard transactions that now comprise much corporate practice.

Students will be assessed on the basis of class participation, one individual and two group projects.

This class aims to prepare students to conduct financial valuation and to advise those doing so. Financial valuation techniques—interpretations of financial performance that allow one to assess value—are central to how investors allocate capital, how investment bankers advise companies, how risk is managed, how companies make strategic decisions, and many more parts of the business world. And the manner in which these analyses are conducted has critical implications for the legal work that follows. This class will make students critical consumers of financial analysis, preparing them to anticipate and address the legal consequences of analytical and strategic decisions. We will begin by establishing basic finance and accounting concepts necessary to understand the tools we will use throughout the course. Then we will turn to the standard valuation techniques that are now ubiquitous in the daily work of corporate advisors. Next, we will consider the financial and legal issues that arise in connection with an initial public offering. We will then turn to a second transactional type heavily depending on valuation analysis: a merger. Finally, we will close the course by giving extensive consideration to the finance, advisory, and legal implications of a leveraged buyout. The class employs a case study of current events, with the goal of giving students financial and legal fluency in the standard transactions that now comprise much corporate practice.

Students will be assessed on the basis of class participation, one individual and two group projects.

Syllabus: 261-01-Spring2024-syllabus.pdf159.86 KB