Don Bosco Institute of Bio Sciences and Management Studies

Kumbalagudu, Mysore Road, Bangalore

Name of the Faculty

Dr. Sumandiran Prithiviraj

Course and Semester

MBA I Semester

Subject

CORPORATE VALUATION AND RESTRUCTURING

Number of Hours Req.

77 Hours

LESSON & SESSION PLAN

Session

Topic to be covered

MODULE 1: BASICS OF BUSINESS VALUATION Introduction to syllabus.

Introduction and Purpose of valuation

Distinction between price and value

4
5
6
7
8
9
10

Principles and Techniques of Valuation

Role of Valuation and key areas of valuation
Concepts of value:- Market Value, Fair value, Book Value, Intrinsic value,
Investment value, Liquidation value, Replacement value.
Role of valuation in Business acquisition and Corporate finance
Valuation process

11
12

Case Study Session 1

13

MODULE 2: VALUATION MODELS Approaches and Methods of valuation

14

Asset-Based Approach

15
16

Earnings Based Approach (Earnings-Capitalization Method ,P/E Ratio)

17
18
DCF Approach: Market value Based Approach
19
20
Market value Added Approach
21
22
23

Enterprise DCF Valuation: Two stage and three stage growth models

24
25
26
Relative Valuation Direct Comparison and Peer group approach
27
28
Contingent claim valuation
29
30

Case Study Session 2

31

MODULE 3: ENTERPRISE VALUATION Valuation of firm in pieces : Valuation of

Debentures

32

Valuation of firm in pieces : Valuation of Debentures

33
34

Valuation of Equity shares

35
Valuation of Preference shares
36
37
Equity DCF Model (Dividend Discount Model and FCFE Model)
38

39

Adjusted Present Value (APV) Model

40
41

Economic Profit Model

42
43

MODULE 4: INTELLECTUAL CAPITAL VALUATION Components and Valuation

of Intellectual capital

44

Market to book ratio. Tobins Q,

45
46
47

Analytical Approaches: Economic value added, Balanced Score card, Human

Resource Accounting.

48
49

MODULE 5: CORPORATE RESTRUCTURING

corporate Restructuring

Introduction and types of

50
51
52

Expansion: Amalgamation, Absorption, Tender offer, Asset acquisition and

Joint venture.

53
54
55
56

Contraction: Spinoff, Split ups, Equity carve out Divestiture, Asset sale.

57
58
59
60
61
62

Corporate controls: Going private, Equity buyback, Leveraged Buyouts, Anti

takeover defense.

63

MODULE 6: VALUATION OF MERGERS & ACQUISITION Concepts of Value in

context of Mergers & Acquisitions

64

Approaches to valuation in case of M&A: DCF Approach

65
Selection of appropriate cost of capital for valuation
66
67
68
69
70

Process of selecting target companies, Forms of Consideration and terms of

acquisitions

Implications of regulations for business combinations, Post merger integration

process

71
Types of exit strategies and their implications
72
73
Shareholder Value Analysis
74
75
76

Exchange Ratio-Bases used for Computation

77

Internal Exam 1 Syllabus

Unit 1 and 2

Internal Exam 2 Syllabus

Unit 3, 5 and 6

Case Study Topics and Presentation Topics :

Refer Student Course Book

Compiled by the Faculty.