This class exists in these courses :
• IÉSEG > IESEG Degree - Programme Grande École > Semester 1 > 2,00 ECTS

Prerequisites

The course requires the concepts and skills developed in accounting and corporate finance. It is a pre-requisite.

Learning outcomes

At the end of the course the student should be able to :
• evaluate the potential of new business ideas and new ventures
• determine the funds an entrepreneur requires to successfully start a new venture
• appreciate the critical role financing plays in new venture creation
• become familiar with the various sources of financing available to new businesses
• formulate a deal structure for a start-up venture
• comprehend the different investment harvesting alternatives

Course description

Identifying and Valuing Opportunities - will focus on identifying good ideas, separating them from bad ideas, and in general, valuing the asset side of the balance sheet.
Structuring Deals - will show the main ways that entrepreneurs are financed and will focus on alternative financing vehicles such as angel investors, ventures capital, and private equities.
Structuring Deals - will cover the specific challenges in private-to-private transactions, including the use of leveraged finance for LBOs and other purposes, and the various techniques of leveraged buyout financing. The emphasis will be on the costs and benefits of partnering with venture capital or private equity firms and using debt.
Harvesting Opportunities - will highlight the main ways of exiting a new venture and analyze the different possible scenarios.

Class type

Class structure

Teaching methods

• Case study
• E-learning
• Presentation
• Project work

Assessment

Grading will be based on a group projects, a MCQ and final exam (case).

Recommended reading

• Smith J, Smith RL, Smith R, Bliss R. Entrepreneurial finance: strategy, valuation, and deal structure. Stanford University Press; -