Study-unit BUSINESS VALUATION
| Course name | Business administration |
|---|---|
| Study-unit Code | 20A00085 |
| Location | PERUGIA |
| Curriculum | Accounting and consulting |
| Lecturer | Andrea Cardoni |
| Lecturers |
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| Hours |
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| CFU | 6 |
| Course Regulation | Coorte 2023 |
| Supplied | 2024/25 |
| Supplied other course regulation | |
| Learning activities | Affine/integrativa |
| Area | Attività formative affini o integrative |
| Sector | SECS-P/07 |
| Type of study-unit | Obbligatorio (Required) |
| Type of learning activities | Attività formativa monodisciplinare |
| Language of instruction | Italian |
| Contents | The course provides the theoretical and technical knowledge for business valuation, with particular reference to the companies operating in the manufacturing and trade sectors. In the first part of the program all the quantitative and qualitative issues are analyzed, with the aim to assess the company strategic positioning and the financial fundamentals. The second part of the program is then devoted to present the theoretical logic and the applicative methodologies for assessing the enterprise and equity value. The aim is to provide students with the theoretical and practical methodology and tools aimed at developing a process for evaluating companies and their economic capital. The course aims to integrate the measurement of profitability and financial sustainability with the strategic vision of the company and its context in order to validate and organically assess the company value. |
| Reference texts | PART 1 - A. Cardoni, Strategia e Performance nel sistema d’impresa. Logiche e strumenti per l’analisi del successo aziendale, Giappichelli, Torino, 2016. PART 2 – G. Paolucci, La valutazione d’azienda. Fondamenti concettuali e prassi applicative, Franco Angeli, Milano, 2011. Altro materiale di supporto indicato dal docente e messo a disposizione nella piattaforma e-learning. Other suggested readings: Robert M. Grant - L'analisi strategica per le decisioni aziendali. Il Mulino. Bologna. 2016 – Capitoli 1, 2 (escluso par. 2), 3, 4, 5, 6. “Il Sole 24 Ore” newspaper. |
| Educational objectives | In a general perspective the course aims to provide a methodology for business valuation, both considering the current performance of the company and its Equity value in special operation of merger, acquisition or transfer. More specifically the learning outcomes are referred to the following: - knowledge of the main concepts of business strategy; - knowledge of the logical steps for the implementation of strategic analysis and business valuation; - knowledge of business performance and value creation analysis in a strategic perspective; - knowledge of analysis framework and tools for external environment, industry, competitors, resources, capabilities and business processes analysis; - knowledge of the main characteristics and contexts to properly apply the business valuation methods; - ability to apply the different logics and techniques of business valuation. |
| Prerequisites | In order to face the subjects described and the conceptual tools proposed with the necessary awareness, it is very important to have a good knowledge of business economics and principles of accounting. |
| Teaching methods | Face-to-face lectures, tasks, seminars, presentation and discussion of real cases. |
| Learning verification modality | The learning assessment will be performed through: 1) the preparation of a project work, which may be assigned a maximum score of 10 points, to be uploaded by the date/time scheduled for the chosen exam on the Unistudium platform; 2) a written test, consisting of 1 theoretical question and 1 calculation exercise, lasting 1 hour and 15 minutes, to which 10 points will be assigned respectively. Specific instructions for preparing the Project Work will be provided during the lessons and, in any case, published on the Unistudium platform. In general, the technical knowledge of the specific topics will be assessed, the ability to correctly apply the concepts also at a calculative level, to frame the themes in the overall perspective and the ability to connect the various themes and explain the underlying logic. |
| Extended program | PART 1. STRATEGY AND PERFORMANCE ANALYSIS Strategy, performance and value. Strategic management and strategic analysis. The strategic analysis in a qualitative perspective The analysis of core perspectives and strategic objectives. The analysis of external environment. The analysis of internal environment. The strategic analysis in a quantitative perspective Financial statement, investments and financial structure Financial method of classification. Operational method of classification. Analytical relevance of financial statement components in a strategic perspective. Income statement and economic performance. Value added method of classification and margins. Functional method of classification and margin. Fixed costs and variable costs method of classification and margin. Cash flow statement and financial analysis. Profitability, financial sustainability and economic value added analysis PART 2. ENTERPRISE VALUE AND VALUATION METHODOLOGIES FOR CORPORATE FINANCE Contexts and logics of business valuation. The perspective of M&A (merger and acquisitions) and corporate finance. Principles and methodologies for business valuation. Methods based on current value of assets and liabilities (including intangible assets). Methods based on expected earnings. Methods based on discounted cash flows. Combined methods. Empirical methods. Multiples. Business valuation standards. Business valuation report. |