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Studiegids

nl en

Corporate Finance

Vak
2018-2019

Course requirements

Master degree in Law. This course is part of the Advanced Master Law and Finance.

More information: https://www.universiteitleiden.nl/en/education/study-programmes/master/law-and-finance

Course information

Corporate Finance in a strict sense deals with the capital structure of companies. In addition, Corporate Finance is used to paraphrase the investment banking business, which besides funding obtained on financial markets deals with merger & acquisition processes (M&A). This course will focus on the latter and will explain and provide context of when and why companies enter onto M&A. Initially we will zoom in on the actors: their roles and inter-relation to each other. Thereafter we will discuss the valuation creation principles. The course will provide lawyers with a basic understanding of the theoretical foundations of valuation fundamentals and methodologies against the backdrop of mergers, take-overs and public to private transactions. In addition, time will be spent on understanding the dynamics of valuations in relation to the role of uncertainty and risk. Apart from the financial aspects, we will also focus on the broad legal context of these processes, with a particular focus on corporate governance and transaction related documentation such as fairness opinions. Cases will be presented throughout the course in order to learn how to apply this knowledge in practice. Upon completion of the course, students should be able to comprehend the process of M&A, aspects of valuations and have gained an understanding of the context in which valuations are being used.

Course learning objectives

This course aims to offer students a broad introduction to the themes of corporate finance and to increase their understanding of financial markets, M&A processes and valuation methodologies. After completing the course:

  • Students are able to explain the drivers of M&A decisions and are able to identify the various actors involved.

  • Students are able to identify the relevant legal and governance aspects involved with M&A and valuations and are able to include the relevant legal clauses in legal documentation.

  • Students are able to analyze a business plan.

  • Students are able to describe the various valuation methods available, such as DCF and capital markets pricing mechanisms.

  • Students are able to calculate/understand free cash flows and cost of capital calculations.

  • Students are able to apply the various themes of corporate finance to a concrete case.

Mode of instruction

Lectures

  • Number of (2 hour) lectures: 10

  • Names of lecturers: Wouter H.L. Han

  • Required preparation by students: reading of prescribed materials

Examination method

  • Final exam: take home exam 100%

The final exam will consist of a pracitical assignment requiring the student to respond to a concrete case covering topics discussed in the course. The final exam will be made available to students via Blackboard. Students will have one week to submit their answers to the exam.

The final grade, on the scale from 1(poor) to 10 (outstanding), for the course is established by determining the weighted average and rounded to full grades. Grade 6 (5.5 rounded) is a pass.

Further information about the take home will be communicated to students through Blackboard closer to the exam date.

Blackboard

Course reader and additional literature is distributed through Blackboard.

Course materials

Reading materials will be provided on Blackboard.

Contact

Course Coordinator:
Mr. Wouter H.L. Han

Programme Coordinator:
Ms. Orsolya Kalsbeek-Bagdi
Email address: lawandfinance@law.leidenuniv.nl