Valuation and Financial Analysis - Principles and Practices
Program Director and Instructor
Professor Bala Dharan, Harvard University and MIT
Program Outline and Objectives
Finance executives, investors, accountants, and financial consultants recognize that valuation and financial analysis are fundamental tools for the success of complex business transactions, such as mergers and acquisitions. Knowledge and application of leading-edge financial analysis techniques for the evaluation of risk and value determine the success or failure of business investments and stock market performance.
In this executive program, the overall goal is to help participants learn how to analyze a company's business strategy and its financial statements in order to value the business. In the process, participants learn to appreciate the use of advanced finance and accounting tools developed in recent years to evaluate the quality and reliability of business cash flows, measure and control business risks including litigation risk and default risk, and evaluate the value of future strategic options.
Equal emphasis is placed on learning concepts and discussing examples of implementation from practice. Implementation issues are addressed particularly for difficult valuation areas such as technology valuation, cost of capital and terminal value. Relevant new accounting concepts such as fair value, derivatives and business combination are also discussed.
Method of Instruction
Participants will receive a workbook containing notes, cases, problems and references for further study. The material will be presented using lecture, class exercises, and case discussions. Class discussion by participants will be emphasized. Participants will also work on selected problems and cases in small groups.
Who Should Attend
The mix of basic valuation techniques and applications provided in this seminar should appeal to a widely diverse audience. In particular, it should be useful for:
• Equity research analysts, who are interested in examining alternatives to the multiples that they use or the linkage to discounted cash flow models.
• Corporate financial officers, who want to understand the details of valuation, either because they are planning acquisitions or are interested in value
enhancement strategies for their firms.
• Analysts involved in mergers and acquisitions, who would like to acquire a wider repertoire of valuation skills.
• Portfolio Managers who are interested in the effects of corporate restructuring on firm value, and the implications for portfolio management.