Finance 556
Financing Growth Companies
Spring 2007
Thursday: 6:00 p.m.- 8:30 p.m.
Version 1.2 (3-December-06)
Course Learning Objectives:
This course provides a broad coverage of how rapidly growing firms can obtain their necessary financing. The course is roughly divided into three segments. The first is a review of the 'tool kit' an analyst must have to assess various financing alternatives. Within this segment, we will review financial forecasting, comparables valuation, and free cash flow valuation. The second segment is focused venture capital financing including term sheets, venture capital returns, and real options valuation. The last segment focuses on exit strategies, primarily through case applications and outside speakers.
Required Course Materials:
A case pack with readings can be purchased directly from Harvard Business School Publishing (c03243)
http://www.hbsp.com. Other course notes and readings can be obtained through Blackboard.Office Hours:
I am available by email most of the day and evening. I usually respond to e-mail early in the morning. I will be in my campus office on Monday and Tuesday afternoons. Face-to-face meetings can be arranged by appointment.
Course Grade
There are 4 cases/problem sets that must be turned in during the semester. These assignments must be submitted electronically and are due at the beginning of class. 1/2 grade penalty for late submissions. You may do these in groups of up to 3 students, but it is not required. These assignments will be posted to Blackboard/Assignments. One of these cases will require in-class presentations (after spring break).
The mid-term is a take-home exam
There are three parts to this component of your grade. With the exception of about three or four classes, every meeting will require you to prepare for a case discussion. Your preparation and contribution to these discussions will determine this component of your grade. When there is no case discussion, I may have problems, exercises or related journal articles assigned for review at the beginning of class. These assignments will not be turned in but will be part of your class participation grade. Finally, I will assign current events readings that you should be prepared to discuss in the class after they are assigned.
Disability Disclosure:
Any student who has a need for accommodation based on the impact of a disability should contact me privately to discuss the specific situation as soon as possible.
Academic Freeedom:
Freedom to teach and freedom to learn are inseparable facets of academic freedom. The University has adopted a policy on Student and Faculty Academic Rights and Responsibilities (Policy # 03.70.02) which can be accessed through the following link:
http://policies.temple.edu/getdoc.asp?policy_no=03.70.02
Miscellaneous:
Course Outline:
Date/Topics:
Class #1 (January 18) Introduction
Class #2 (January 25): Private equity/LBO overview
Class #3 (February 1): Private Equity LBO Valuation
Class #4 (February 8): Into to Venture Capital
Class #5 (February 15): VC Due Diligence
Class #6 (February 22): Term Sheets
Class #7 (March 1): Valuing VC deals
SPRING BREAK (March 8)
Class #8 (March 16): Valuing Technology Investments I
Class #9 (March 23): Valuing Technology Investments II
Class #10 (March 30) Other financing sources
Class #11 (April 5) IPO - I
Class #12 (April 12) IPOs
Class #13 (April 19): Exit Alternatives
Class #14 (April 27): Entrepreneur’s view
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Last Updated: 20-Nov-06