853 The Way It All Works: Investing, Negotiating, and Operating in the Real World

Taught from the perspective of a private equity investor, CEO, and law school graduate, this course will provide students the “big picture” of how the universe of pension funds, endowments, limited partners, general partners, and other investors is interwoven, how money is organized, and how lawyers, accountants, and other consultants and advisors fit into the process of raising capital, selling a company, and conducting due diligence.  Students will explore concepts such as valuation (assets vs. enterprise valuation), EBITDA, allocation of risk, hurdle rates, basic financial statement analysis, and other investment-related topics, with a focus on real-world insights into how these principles work in practice.  Through a simulated deal, students will determine the price they want to pay for a hypothetical company and how best to quarterback the documentation to ensure the contract reflects the negotiated value.

Course Type
Lecture
2018
Winter 2018
Course Number Course Credits Evaluation Method Instructor Meeting Day/Times Room

853.01 0.5

James Rhee

WTh 1:30-4:30 PM

Taught from the perspective of a private equity investor, CEO, and law school graduate, this course will provide students the “big picture” of how the universe of pension funds, endowments, limited partners, general partners, and other investors is interwoven, how money is organized, and how lawyers, accountants, and other consultants and advisors fit into the process of raising capital, selling a company, and conducting due diligence.  Students will explore concepts such as valuation (assets vs. enterprise valuation), EBITDA, allocation of risk, hurdle rates, basic financial statement analysis, and other investment-related topics, with a focus on real-world insights into how these principles work in practice.  Through a simulated deal, students will determine the price they want to pay for a hypothetical company and how best to quarterback the documentation to ensure the contract reflects the negotiated value.

Grading Basis: Credit/No Credit

Degree Requirements
Pre/Co-requisites
None
Enrollment Restrictions
None

*Please note that this information is for planning purposes only, and should not be relied upon for the schedule for a given semester. Faculty leaves and sabbaticals, as well as other curriculum considerations, will sometimes affect when a course may be offered.